Chinese electric vehicle (EV) startup Avatr Technology announced this week it had completed its A-round of fund raising despite tough market conditions including widespread Covid lockdowns across China earlier this year and tighter government licensing requirements.

Avatr Technology, originally backed by companies such as Changan Automobile, Huawei, CATL and local investment firm Chongqing Liangjiang New Area, said it had so far raised CNY5bn (US$741m) to fund its expansion, up from CNY2.4bn (US$356m) at the end of last November.

New investors in the company included the National Green Development Fund Company government fund owned by China Merchants Capital and Shanghai-based venture capital firm Inno-Chip.

Avatr Technology CEO Tan Benhong said in a statement: “The joint force of local financial funds and well known industrial capitals not only provides more stable capital support but also further enriches our industrial chain resources, making our strategic cooperation ecology and capital structure more diverse.”

The company said the new funds would be used to accelerate the development of future products, develop the brand and get facilities construction under way.

The company added it was already developing its second EV model.