IDG Invests $159M In Chinese New Energy Vehicle Firm SKIO Matrix

Venture capital firm IDG Capital has invested RMB1 billion (US$159 million) in Hangzhou-based new energy vehicle firm SKIO Matrix Co., Ltd., according to the company’s official WeChat account. 

IDG has been increasingly active in the new energy vehicle space. Last week, it joined Alibaba Group and Taiwanese electronics manufacturer Hon Hai Precision Industry Co., Ltd., also known as Foxconn, in a series B round in Chinese electric vehicle maker Xiaopeng Motors. Last October, IDG and Foxconn were reportedly raising a RMB10 billion (US$1.5 billion) fund to jointly invest in automotive technologies ranging from autonomous driving to car battery development.

SKIO was founded in 2013 and originally focused on designing batteries for new energy cars. It now helps auto manufacturers convert their existing vehicles models into electric vehicles. It also provides auto financing services.

The company has produced about 10,000 electric vehicles for Dongfeng Motor Corporation. In 2015, it partnered with China’s largest ride sharing company Didi Chuxing to set up a joint venture to design mini electric taxi. It has produced a two-seat passenger vehicles called Xiaodi for Didi.

Last April , SKIO Matrix launched a plan called "Blue Avenue," aiming to build a national charging station network and adding 250,000 new electric cars to the street. It has so far built 30 stations across 12 cities in China.

The firm raised RMB72 million (US$11.5 million) from Chinese venture capital firm Ameba Capital and Rice Bank in 2014. It raised RMB800 million (US$127 million) from Meridian Capital China, Dingcang Capital and Heaven-Sent Capital Management Group in 2015.