Momenta Global, a self-driving technology firm backed by General Motors and Tencent Holdings, recently launched its initial public offering (IPO) in Hong Kong, aiming to raise up to HK$5.89 billion (approximately $751.1 million). The company plans to allocate a significant portion of these proceeds, about 60%, to bolster research and development, including investments in artificial intelligence computing power, data storage, and its engineering team. Another 20% of the funds will be used to expedite the rollout of its Robotaxi services.
Despite reporting a loss attributable to owners of 3.46 billion yuan (approximately $508.97 million) in 2025, which widened from 3.21 billion yuan the previous year, Momenta's revenue saw an 82.1% increase to 2.41 billion yuan. However, when accounting for non-operational items like fair-value adjustments and share-based compensation, Momenta's adjusted net losses significantly narrowed, indicating a stronger underlying financial trajectory. The company's adjusted net losses decreased from 1.093 billion yuan in 2023 to 959 million yuan in 2024, and further to 303 million yuan in 2025. This suggests that its core software business is nearing structural net profitability.
Momenta's CEO expects the company to reach overall profitability by 2028. The company, founded in 2016 by former Microsoft researcher Cao Xudong, develops driving-assistance software for automakers, helping vehicles steer, brake, change lanes, and park while still requiring driver alertness. By the end of 2025, over 680,000 vehicles were using Momenta's software. Its impressive client and partner list includes Toyota, Mercedes-Benz, SAIC, General Motors, BYD, Audi, and a strategic partnership with Grab. The IPO attracted several cornerstone investors, such as Mercedes-Benz, BlackRock funds, GIC, Fidelity International, Oaktree, Franklin Templeton, and ChinaAMC. Momenta is also expanding its Robotaxi trials overseas, with plans for commercial services in Abu Dhabi and Munich this year, in collaboration with Uber.
