Asian Tech Press (Oct 19) -- Xpeng Heitech, a flying car startup backed by Chinese electric car makers XPeng Inc., announced Tuesday that it has closed a Series A round of funding of more than $500 million, at a pre-money valuation of more than $1 billion.

The round was led by IDG Capital, 5Y Capital and XPeng Motors, and followed by leading institutions such as Sequoia Capital China, Eastern Bell Capital, GGV Capital, GL Ventures, LLC and Yunfeng Capital.

The Guangzhou-based flying car company said this is the largest single round of financing to date for a company in the low-altitude manned flying vehicle sector in Asia.

"XPeng Motors's exploration of the future of transportation goes beyond smart cars," said Xiaopeng He, founder, CEO and chairman of XPeng Motors.

Deli Zhao, founder and president of Xpeng Heitech, said, "This round of financing represents the capital market's bullishness on the flying car industry, as well as the recognition of Xpeng Heitech's technical strength."

"After the completion of the financing, Xpeng Heitech will further increase investment in flying car R&D and manufacturing, high-end talent pool and airworthiness certification. The next generation of flying cars will really realize the coupling of flying vehicles and cars, which can run on land as well as fly in the air, and is expected to formally meet with the public in 2024," Zhao added.

Xpeng Heitech is now the largest flying car company in Asia, headquartered in Guangzhou. Since 2013, the company has been engaged in the field of manned flying vehicle, and so far, it has successfully developed five generations of intelligent electric manned flying vehicle products.

At the end of September 2021, its first two-seater intelligent electric vehicle, the Voyager X2, was exhibited at the 13th China International Aviation and Aerospace Exhibition in Zhuhai.