Uber partner Momenta pursues fresh capital, targets over $5B valuation

Momenta, a Beijing-based autonomous driving startup founded in 2016, is reportedly in the process of raising a new pre-IPO funding round at a valuation exceeding $5 billion.

Backers already include heavyweights like Temasek Holdings, Tencent Holdings, and Jack Ma’s Yunfeng Capital, but the ongoing round is expected to attract even more strategic players such as Mercedes-Benz and Hyundai.

Momenta targets fresh funding 

According to anonymous sources familiar with the matter, Momenta is currently working with advisers to gauge interest from potential investors, and is aiming for an initial goal of several hundred million dollars, though the final amount could increase depending on that process.

Should the funding proceed as planned, it could help propel the fledgling firm toward an eventual initial public offering. Since it was founded in 2016, Momenta has proven it can provide advanced driver assistance to automakers and currently powers robotaxis in cities from China to Germany. 

Questioned about the new funding round, a Momenta spokesperson called the financial details incorrect, and refused to elaborate. 

“The figures and progress reported are inaccurate, but it is not convenient to disclose the exact details at this time,” they said. 

While it works on the completion of its pre-IPO financing round, Momenta has continued spreading its roots and securing more partnerships. 

On September 25, German luxury automaker Mercedes-Benz announced a partnership with Momenta to develop driver assistance systems for the Chinese market. This makes it the latest automaker after BMW and Audi to leverage the Chinese startup’s technology.

The jointly developed smart driving assistance system is expected to launch this fall in the domestically produced all-electric CLA model, and will offer driving assistance on highways, urban roads, and parking lots.

Momenta may choose Hong Kong over the US for its IPO 

According to four sources, Momenta is currently considering moving its IPO to Hong Kong from New York, joining a growing list of Chinese companies that chose to debut in the Asian financial hub to avoid heightened U.S.-China tensions.

The potential change in Momenta’s listing venue comes after an approval by China’s securities regulator to list in the U.S. expired in June after it was granted mid-last year, according to the regulator’s website.

The company has reportedly informed some of its investors about plan to potentially change the listing site to Hong Kong in 2026, two of the sources said. According to them, the plan is at an early stage and is subject to changes.

The company is now nearing completion of its pre-IPO financing round, and reports claim it is expected to involve investors including Mercedes-Benz and Hyundai. Benz is keeping mute, but Hyundai has confirmed there is “a compelling use case” to collaborate with Momenta in China for its robust autonomous driving tech, even though it failed to elaborate.

For now, details of the IPO, including the timeline, listing venue, offering size and valuation are yet to be finalized.

“Any suggestion that Momenta has informed investors of a confirmed plan to list in Hong Kong in 2026 is untrue,” the company said.

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