Shenzhen Zhuoyu Technology, an advanced assisted driving solutions (ADAS) developer spun out of Chinese drone giant DJI, has raised strategic financing of over 3.6 billion yuan ($506.5 million) from China’s state-owned automaker FAW Group.
The new investment valued Zhuoyu Technology (ZYT) at more than 10 billion yuan ($1.4 billion) post-money, according to statements by the two companies.
ZYT retains its independent operations post this deal, with no change to its management team, technology road map, or brand strategy, while FAW Group plans to support ZYT with industry resources and through business collaborations, according to the statements.
The sizeable investment is built on an existing partnership between the two companies, which have joined hands in developing smart driving vehicles since April 2024. To date, FAW Group has embedded ZYT’s smart driving solutions in multiple vehicle models to achieve ADAS features such as intelligent parking, and highway and city navigation.
The completion of the deal comes about two months after a September 22 regulatory filing with the State Administration for Market Regulation (SAMR) showed FAW Group’s plan to purchase a 35.8% stake in ZYT from its holding company New Territory Technology Company Limited, which owned a 70.65% stake at that time.
Following the proposed deal, New Territory should retain a 34.85% stake as the second-largest shareholder of ZYT.
ZYT was founded in 2016 as the smart driving team of DJI, formerly known as “DJI Automotive,” before it spun out from the drone company in 2023 to operate independently. In July 2024, the team officially adopted “Zhuoyu Technology” as its brand name and started roping in external financing.
As of today, ZYT has developed a product portfolio covering hardware & sensors, software & algorithms, a computing platform, and fleet learning solutions. It offers ADAS products to power vehicles developed by Volkswagen, Chery, FAW Group, Dongfeng Motor Corporation, Great Wall Motor, BAIC Group, and Shanghai General Motors Wuling, according to its website.
The deal saw FAW Group join ZYT’s list of shareholders including New Territory; CMG-SDIC Capital; Guangyuan Investment; and Yunhan Fund, the corporate venture capital (CVC) unit of Chinese heavy machinery manufacturer Xuzhou Construction Machinery Group (XCMG).
Other existing shareholders include Chinese electric vehicle major BYD; state-owned SAIC Motor Corp’s Hengxu Capital; and BAIC Capital, the investment arm of Beijing Automotive Group, also a state-owned automaker in the country.
