Chinese electric vehicle startup Singulato Motors is now facing bankruptcy proceedings initiated by a group of creditors.
Singulato had been exposed for widespread unpaid wages and insolvency, leading to court-ordered enforcement.
Established in 2014, Singulato received investments from local governments such as Tongling in Anhui, Zhuzhou in Hunan, and Suzhou in Jiangsu. Zhou Hongyi, founder and CEO of Qihoo 360, is also a major investor in Singulato. In total, the EV startup raised a funding amount of 17 billion yuan throughout its history.
Singulato had planned for three production bases, and its urban showrooms were once bustling with activity. They even expanded into commercial vehicles and electric two-wheelers, spreading their operations extensively.
However, despite being founded around the same time as NIO, XPeng Motors, and Li Auto, Singulato never managed to produce and deliver a single vehicle.
On July 5th, the Intermediate People's Court of Tongling City in Anhui Province issued a notice stating that on June 26th,2023, the court accepted the bankruptcy liquidation case of Anhui QiDian Intelligent New Energy Automobile Co., Ltd. (also known as Singulato Motors) based on the application of ten creditors.
In simple terms, Singulato has effectively gone bankrupt and closed down. The creditors have applied to the court for bankruptcy liquidation proceedings to recover their losses.
Furthermore, the court has appointed a professional accounting firm to take over the management of Singulato Motors. This indicates that the management team of Singulato Motors, including its founder Shen Haiyin, has exited the company.
It is surprising that the official website of Singulato Motors is still accessible and functioning normally. Even more astonishing is the fact that the homepage still displays contact information for recruiting franchisees and provides the Beijing showroom address.
However, it's important to note that despite the website being operational, the company's official status is that of bankruptcy and closure. The discrepancy between the online presence and the company's actual state may be due to delays in updating the website or the ongoing process of winding down the business affairs.
In his early years, Shen Haiyin, the founder of Singulato, ventured into entrepreneurship in Japan and was subsequently acquired by Google. He later joined Kingsoft Corporation, where he held positions as Vice President of Kingsoft Group and President of Kingsoft Security.
From 2013 to 2015, Shen Haiyin served as Vice President at Qihoo 360 Technology Co. Ltd. During his tenure, he was responsible for overseeing various businesses, including 360 Mobile Security, 360 Cloud Drive, and 360 Security Router.
The success and impact of Tesla in the EV sector likely inspired Shen Haiyin to venture into the electric vehicle market with Singulato Motors.
He expressed his desire to venture into car manufacturing to Zhou Hongyi, hoping to initiate an internal automotive project within Qihoo 360.
However, Zhou Hongyi believed that car manufacturing was completely unrelated to 360's core business and rejected Shen Haiyin's proposal. In response to the disagreement, Shen Haiyin decided to pursue his vision independently, leading to the birth of Singulato Motors
Singulato Motors unveiled its first model, the iS6, in 2016. This debut preceded the release of the first models by other prominent Chinese electric vehicle startups like NIO, XPeng Motors, and Li Auto, which were founded in the same year. Singulato Motors' early entry into the market garnered significant attention from investors, the media, and the public.
Singulato Motors successfully completed a total of 11 funding rounds from 2015 to 2020, Notable investors included Lenovo Star, their former parent company 360, Intel Capital, Oriental Fortune Capital, Itochu Corporation, Tongling Municipal Government of Anhui.
Singulato Motors insisted on establishing its own factories and almost simultaneously planned three production bases in Tongling, Anhui; Zhuzhou, Hunan; and Suzhou, Jiangsu.
According to the company's official announcements, the investment amounts for these three bases were 8 billion yuan, 5 billion yuan, and 15 billion yuan, respectively.
In addition to the factories, it also invested in building research and development centers, offline experience stores, and relocating its headquarters, among other operations. Every aspect of expansion incurred significant expenditures for the company.
It's worth noting that the total funding of 17 billion yuan was raised over a span of 5 years, and not all of it was available upfront. The allocated budget and timeline for the utilization of funds might have posed challenges in managing the company's expenses effectively.
In 2017, Shen Haiyin failed to deliver on his promise, as the iS6 was not able to commence mass production as scheduled.
However, in 2018, Shen Haiyin made another commitment, stating that the iS6 would be launched during the Spring Festival of 2019.
Until 2021, Singulato Motors was still searching for a contract manufacturer for mass production of the iS6. There were rumors of a collaboration with Beijing Automotive Industry Holding Co. (BAIC), but ultimately, there were no updates or developments on this front.