HedgeCo.Net — XPeng said it entered a share-purchase agreement on August 24 under which Dogotix, the Cayman vehicle for its robotics business, expects to receive about US$900 million from a subscription, excluding warrants. The Hong Kong exchange filing and the companion U.S. 6-K exhibit both print that US$900 million figure and both exclude additional proceeds. The Robot Report independently reported more than $900 million in an initial funding round.
The US$900 million is not all outside money. External investors agreed to subscribe for Series A preferred shares at an aggregate US$600 million, an XPeng subsidiary agreed to subscribe for Series A preferred at US$200 million, and executive subscribers agreed to take US$100 million of ordinary shares, the filing says. IDG Capital led, with Gaorong Ventures participating and Tencent and Alibaba as strategic investors, the company said. The Robot Report named the same lead and the same strategic backers.
Do not add the warrants to the round. The executives also took warrants with an aggregate exercise price of US$500 million, the filing says, and an additional investor may subscribe for about US$15 million more. Those amounts sit outside the US$900 million. The Robot Report put the pre-money at $5 billion and the post-transaction value at more than $6.3 billion. Treat the valuation as reported coverage of the filing, and treat the agreement as conditional: closing still requires the stated conditions, including plan adoption and applicable approvals.
XPeng said it will retain control and continue to consolidate Dogotix. That is a carve-out financing, not an exit. Proceeds are earmarked for the robotics business’s growth, capital expenditure, and working capital, the filing says.
The allocator question is how much of a “US$900 million round” is parent money, how much is preferred from IDG and strategics, and how much is a warrant that has not been exercised. Anyone booking US$1.4 billion as closed capital has counted paper that the filing kept off the subscription.