September 29, 2024 10:59 AM | 3 min read Zinger Key Points Following the completion of the transaction, Nio will hold 88.3% of controlling interest in Nio China. The strategic investors along with existing shareholders will collectively hold the remaining 11.7% equity interest. Chinese electric-vehicle startup Nio, Inc. NIO on Sunday announced that it has received cash infusion at a time the company has making a heavy push into the low-end of the market with its Onvo brand of vehicles. What Happened: Shanghai-based Nio said strategic investors, including Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., Ltd. and CS Capital Co., Ltd., have agreed to invest an aggregate of 3.3 billion yuan ($470.64 million) in cash in its subsidiary Nio China. The investment is in lieu of an equity stake in the company. Concurrently, Nio has agreed to invest 10 billion yuan (about $1.43 billion) in cash to subscribe to the newly issued shares of Nio China. Following the completion of the transaction, Nio will hold 88.3% of controlling interest in Nio China. The strategic investors along with existing shareholders will collectively hold the remaining 11.7% equity interest in Nio China. Nio also has rights to invest an additional 20 billion yuan investment to subscribe to additional shares in Nio China by Dec. 31, 2025, based on the same price and terms of investment transaction. The completion of the investment is subject to regulatory and internal approvals as well as the satisfaction of customary closing conditions. The strategic investors and Nio will inject cash into Nio China in two instalments, with 70% to be made by Nov. 2024 and 30% by Dec. 2024. “This investment not only demonstrates the strategic investors' firm support for the high-quality development of the electric vehicle industry but also underscores their strong recognition of NIO's unique values and industry leadership. With an enhanced balance sheet,” the company said in a statement.