Momenta's $6 Billion Valuation: How This Chinese Startup is Powering the Future of Driverless Cars
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Momenta's $6 Billion Valuation: How This Chinese Startup is Powering the Future of Driverless Cars

Autonomous Vehicles
autonomousvehicles
startupfunding
driverlesstech
ai
automotive
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Summary:

  • Momenta is raising funds at a $6 billion valuation, signaling strong investor confidence in its driverless technology.

  • The startup has signed deals with Mercedes-Benz and BMW to equip their electric vehicles with advanced driver assistance systems in China.

  • Momenta's technology enables autonomous features like lane-changing and is set to be used on up to 40 Mercedes-Benz models.

  • Key investors include Tencent, Toyota, and Mercedes-Benz, supporting the company's growth and potential IPO.

  • The company operates in a competitive market with rivals such as Nvidia and Horizon Robotics, and is considering an IPO in Hong Kong.

Momenta's Funding and Valuation

Momenta, a Chinese driverless technology startup, is raising a fresh round of funding that could value the company at around $6 billion, according to sources familiar with the matter. This valuation might change as the funding progresses, but it highlights the company's growing prominence in the autonomous vehicle sector.

A car equipped with Momenta technology on display at the IAA Mobility show in Munich, Germany in September 2025.

Image: A car equipped with Momenta technology on display at the IAA Mobility show in Munich, Germany in September 2025. Credit: Arjun Kharpal | CNBC

Key Partnerships with Major Automakers

Momenta has secured significant deals with leading automakers. Recently, the company partnered with Mercedes-Benz to integrate its technology into the all-new electric CLA in China. This collaboration will enhance Mercedes-Benz's driver assistance system across highways, urban streets, and parking. The technology is expected to be equipped on up to 40 models from Mercedes-Benz in the future.

In June, Momenta also signed a similar agreement with BMW to equip its Neue Klasse electric vehicles in China with Momenta's advanced driver assistance systems (ADAS). These partnerships underscore the startup's ability to attract global automotive giants.

Technology and Market Position

Momenta develops software and algorithms for autonomous driving features, such as lane-changing capabilities. The company's ADAS technology enables vehicles to perform functions autonomously, positioning it in a competitive market that includes players like Nvidia and Horizon Robotics in China. Other competitors in the autonomous driving space include WeRide and Pony.ai.

Investor Backing and IPO Plans

Momenta's investor roster includes major names like Tencent, Temasek, SAIC Motor, Toyota, and Mercedes-Benz. The company is also preparing for an initial public offering (IPO), with considerations to shift its listing from New York to Hong Kong, as reported by Reuters.

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