Shanghai (ZXZC)- Rockets Capital, a China-based private equity firm focusing on investments in the smart energy vehicle (EV) supply chain, announced on March 17 it has closed its first round of over $200 million in capital commitments.

The new funding round was led by the EV startup XPeng and also attracted such leading institutional investors as IDG Capital, eGarden, Sequoia China, 5Y Capital, and GGV Capital.

Founded in early 2022, Rockets Capital focuses on the venture and growth stage investments in smart EV industry value chain, clean energy, and cutting-edge technology fields. While operating independently with market-oriented approaches, the firm will leverage XPeng’s industry expertise and resources, incubate technical innovation, and utilize financial investments and capital markets to energize entrepreneurs and startups, so as to deliver outstanding investment returns for its investors.

Rockets Capital said the talents of its core investment team came from leading smart EV companies, automotive industry funds, and venture capital funds. It has already signed agreements to invest in several leading firms in the NEV industry.

Photo credit: XPeng

Rockets Capital's strategic anchor investor, XPeng, is a leading Chinese smart EV startup with full-stack proprietary software capabilities. Last year, it ranked first among Chinese new energy vehicle (NEV) startups by delivering 98,155 vehicles annually.

“We believe it is critical to nurture technologies that will enrich the value chain for sustainable mobility,” said Brian Gu, Vice Chairman & President with XPeng. “We have high confidence in the investment team of Rockets Capital, and their capability to accelerate the sector's development as well as create value for its investors.”