China's robotaxi upstart WeRide confidentially files for IPO

WeRide.ai, one of the most funded Chinese robotaxi operators, has confidentially filed to go public in the U.S., Bloomberg reported on Monday. The company declined to comment when reached by TechCrunch.

China's autonomous driving startups have been racking up hefty investments in the past few years to fuel their technology development and fleet deployment, which can take up a big chunk of their costs. Their valuations have also skyrocketed as self-driving remains one of the few sectors that excites startup investors, even though the technology is far from mature and large-scale commercialization.

WeRide's valuation jumped to $3.3 billion when it raised its Series C round nearly two years ago. It reportedly pulled in a new round in March 2022, lifting its valuation to $4.4 billion. Its nemesis Pony.ai achieved an even loftier valuation -- $8.5 billion -- a year ago.

At some point, though, these capital-intensive robotaxi operators will need to access the public market for capital, as not many investors are able or willing to sign the large checks that support their late-stage expansion. WeRide is aiming to raise as much as $500 million, according to Bloomberg.

But during the past few years, the odds were against them and other Chinese tech firms seeking U.S. IPOs. As geopolitical tensions rose, U.S.-listed Chinese companies were increasingly placed under Washington's scrutiny, especially for their accounting practices. Weibo, China's equivalent of Twitter, was one of a handful of companies put on the U.S. government's delisting watchlist.