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Geely group invests in Daimler-backed Volocopter, to launch air taxis in China

Geely Automobile Holdings Ltd. parent Zhejiang Geely Holding Group Co. Ltd. led a €50 million funding round for German electric-helicopter maker Volocopter GmbH under the carmaker's push to transition to a mobility technology group as auto sales continue to slow in China.

The carmaker picked up a minority stake in Volocopter, which is testing an urban air mobility service and counts Daimler AG among its early investors.

Under the deal, the companies agreed to enter into a joint venture to offer air taxi service in the Chinese market. The companies did not give a timeline on when they plan to launch in China.

Volocopter hopes to use the proceeds from the series C funding round to launch VoloCity aircraft and air taxi service, including the receipt of commercial certification by the European Aviation Safety Authority, within the next three years.

The current round boosts the total capital that the company has raised to €85 million, according to a Sept. 9 announcement. The startup said it is still in talks with additional investors for a second funding round closing around the end of 2019.

The announcement comes less than six months after Daimler sold its 50% stake in its electric car brand Smart to Geely group, making the unit a 50/50 joint venture between the two companies. The group's Chairman Li Shufu holds a 9.7% stake in the German carmaker.

"Our latest cooperation with Daimler, building on our partnership in smart and premium ride-hailing services, as well as our joint venture with Volocopter underlines our confidence in Volocopter air taxis as the next ambitious step in our wider expansion in both electrification and new mobility services," Li said in a statement.

Following the completion of the series C round, the startup's founders, Stephan Wolf and Alexander Zosel, remain the company's largest shareholders.