Chinese driverless tech startup Momenta is raising funds at a roughly $6 billion valuation

Momenta, a Chinese driverless exertion startup, is raising a caller circular of backing that could worth the institution astatine astir $6 billion, 2 radical acquainted with the substance told CNBC.

The valuation could alteration arsenic the backing progresses, 1 of the people, who wished to stay anonymous due to the fact that they were not authorized to sermon the details publicly, said.

Bloomberg archetypal reported the woody with a valuation supra $5 billion.

Momenta declined to remark erstwhile contacted by CNBC.

The Beijing-headquartered institution develops bundle and algorithms that tin beryllium utilized by automakers to springiness their vehicles immoderate automated driving features. These institution claims that its Advanced Driver Assistance Systems (ADAS) allows a car to transportation retired immoderate functions autonomously specified arsenic changing lanes.

This week Momenta and Mercedes-Benz struck a woody to bring the Chinese firm's exertion to the German car giant's all-new electrical CLA in China. The exertion volition powerfulness Mercedes-Benz's operator assistance strategy crossed highways, municipality streets, and parking, the 2 companies said successful a associated property merchandise connected Thursday.

Momenta's exertion volition yet beryllium equipped connected 40 models developed by Mercedes-Benz, a idiosyncratic acquainted with the substance said.

BMW signed a akin woody successful June to equip its Neue Klasse electrical vehicles successful China with Momenta technology.

Momenta's database of investors see Tencent, Temasek, SAIC Motor, Toyota and Mercedes-Benz.

The institution is participating successful a competitory marketplace that includes players similar Nvidia and Horizon Robotics successful China. There are a fig of different players successful the autonomous driving bundle abstraction including WeRide and Pony.ai.

Signing with planetary automakers is simply a large triumph for Momenta which is besides gearing up for an archetypal nationalist offering. Reuters reported connected Friday that the institution is considering shifting its listing to Hong Kong from New York.