NIO-backed LiDAR maker Innovusion files for US IPO - PingWest

NIO-backed LiDAR maker Innovusion files for US IPO

NIO-backed LiDAR maker Innovusion files for US IPO

Rebbeca Ren

posted on August 15, 2023 6:28 am

The company's IPO comes at a time of heightened competition. Rival Hesai went public in the US in February, raising $190 million.

Innovusion, the LiDAR supplier for electric vehicle manufacturer NIO, is making plans for a potential initial public offering (IPO) in the US.

LiDAR, which stands for Light Detection and Ranging, is a remote sensing method that uses laser light to measure distances and create detailed 3D maps of the surroundings. It's a crucial technology for achieving safer and more reliable autonomous driving.

The China Securities Regulatory Commission (CSRC) on Friday disclosed that Innovusion is considering listing up to 21,382,252 ordinary shares on the Nasdaq exchange. Chinese companies seeking overseas listing are required to get approval from domestic regulatory authorities.

Founded in 2016, Innovusion has established a strong influence in China's autonomous driving field, with R&D centers in Silicon Valley, Suzhou and Shanghai.

It has raised over $278 million in funding from investors such as Singapore sovereign fund Temasek, NIO-backed NIO Capital, and Xiaomi-backed Shunwei Capital, according to Crunchbase.

NIO, the renowned Chinese EV maker, has been a key supporter of Innovusion: its financial backing and strategic partnership have allowed Innovusion to develop its LiDAR technology and bring it to market faster. 

Innovusion's LiDAR sensors are used in several NIO vehicles, including the ES8, ES6 and EC6. The startup hit a new high in 2022, delivering more than 56,000 LiDARs to NIO. Also, it is expanding its customer base to other companies, such as Momenta and Pony.ai.

According to “LiDAR for Automotive Report” by market research firm Yole Group, Innovusion led the L2/L3 market in 2022 with a 27% share. There are six levels of vehicle autonomy, with higher numbers meaning more automation. L2 refers to partial driving automation, and L3 refers to conditional driving automation.

The company's IPO comes as competition intensifies in the LiDAR sensor space, with all players vying for cash and a share of the growing market.

Hesai Group, a L4-focused LiDAR sensor company, went public in February, raising $190 million. The company's quarterly LiDAR shipments increased by 402.9% year-over-year in the first quarter of 2023, but its net loss also widened from 25.1 million yuan to 118.9 million yuan. The Shanghai-headquartered company counts Chinese delivery giant Meituan, smartphone titan Xiaomi, and Hillhouse Capital Group.

Thanks to its booming electric vehicle market and advantages in high-end manufacturing, China is dominating the global LiDAR market.

Shenzhen Autonomous Driving Intelligence Research Center and CHEK, an intelligent vehicle technology and evaluation solution provider, predicted that the global penetration rate of passenger cars equipped with LiDAR will increase from 0.12% in 2021 to 1.5% in 2027, and the penetration rate in China will be close to 10%.

It is estimated that by 2027, LiDAR shipments in the Chinese market will continue to dominate, accounting for more than 70% of the global market, with a compound annual growth rate of 79%.