Momenta's Billion-Dollar IPO: The Valuation Debate Behind China's ADAS Leader

A significant development has emerged in the intersection of the automotive and capital markets: intelligent driving solution provider Momenta has reportedly filed a confidential application for a Hong Kong IPO, targeting a valuation exceeding RMB 100 billion. This company, founded in 2016 and once dubbed "China's first autonomous driving unicorn," is now poised to go public.

For Hong Kong users, the name Momenta may not be as familiar as Huawei or BYD, but its technology is already present on local roads. The IMAD intelligent driving system in IM Motors' IM5 and IM6 vehicles, sold in Hong Kong, is co-developed with Momenta. As this ADAS unicorn prepares for its Hong Kong listing, the critical question is whether its substantial valuation is justified.

From Tsinghua Dropout to ADAS Leader

Momenta's origin story begins with founder Cao Xudong's unconventional path. He dropped out of a Tsinghua University physics PhD program to join Microsoft Research Asia, focusing on AI. He later became R&D director at the then-fledgling AI firm SenseTime. In 2016, he founded Momenta with the mission to build the "brain for autonomous driving."

Early momentum was strong. Its angel round was led by Blue Lake Capital, with Sinovation Ventures and ZhenFund participating. It secured Series A funding from Lei Jun's Shunwei Capital, and a Series B round in 2017 with investors like Nio Capital. By 2018, its valuation exceeded $1 billion, earning it the "first autonomous driving unicorn" title.

However, a period of fundraising silence from 2019 to 2020 coincided with a golden era for Chinese autonomous driving startups like Pony.ai and WeRide. This quiet period sparked external doubts about its trajectory.

The turning point came in 2021. The surging popularity of Tesla's EVs pushed global automakers to recognize that high-level ADAS was no longer optional. In March 2021, SAIC Group invested in Momenta to secure its solutions for the IM Motors brand. This was followed by over $1 billion in funding within a year—three-quarters of its total historic fundraising—from a star-studded list of investors, including SAIC, Toyota, Bosch, GM, and Mercedes-Benz.

By 2022, as highway NOA (Navigate on Autopilot) approached mass production, Cao made a pivotal technical decision: to use deep learning for the planning module instead of relying on a safety net of traditional rule-based methods. He pushed for deep learning, using rules only as a backup. By the end of that year, Momenta had mass-produced highway NOA powered by deep learning for decision-making. It later integrated visual perception and planning into a unified, end-to-end large model, becoming one of the first in China to mass-produce such a solution.

The "Dual-Headed" Landscape: Momenta's Market Position

Where does Momenta stand in the competitive ADAS landscape? A 2025 report from the China Association of Automobile Manufacturers provides a clear picture: the third-party urban NOA supplier market shows a "dual-headed" pattern. Huawei's HI model holds 19.76%, while Momenta commands a dominant 61.06% market share. This means that in the domestic third-party urban NOA market, over six out of ten vehicles run on Momenta's solution.

This position is rooted in Momenta's unique strategy. Cao has articulated a "One Flywheel, Two Legs" approach. The "flywheel" is data-driven technological iteration. The "two legs" are L2+ ADAS and L4 Robotaxi, designed to be mutually reinforcing and co-developed. Compared to pure Robotaxi players, Momenta's advantage lies in leveraging its mass-produced L2+ vehicles for L4 data collection and validation. Both use a unified software and hardware architecture, potentially enabling faster scaling and commercialization of Robotaxi services.

To date, Momenta's solutions have been deployed in nearly 700,000 vehicles, with design wins for over 170 models. Its client list reads like a "who's who" of the global auto industry. Joint venture partners include the "BBA" trio (Mercedes-Benz, BMW, Audi), Toyota, Honda, Nissan, and General Motors. Domestic Chinese partners include SAIC, GAC, FAW, and Great Wall Motors. New models, such as Great Wall's Haval Raptor, have confirmed the adoption of Momenta's L2+ ADAS solutions.

Globally, Momenta's reach is extensive, with its ADAS solutions exported to over 10 countries and regions, including the UK, Norway, Australia, the UAE, and Thailand. In September 2025, Uber and Momenta announced plans to launch a joint Robotaxi service in Munich, Germany, in 2026. IM Motors and Momenta expanded their presence to the UAE and Tunisia, bringing the IMAD system to the Middle East and North Africa. Their collaboration now spans five continents, including markets like Thailand, Mexico, Hong Kong, the UK, Australia, Nepal, Egypt, Singapore, Norway, New Zealand, the UAE, and Tunisia.

The Debate Over a Billion-Dollar Valuation

Momenta's IPO valuation is reportedly expected to exceed RMB 100 billion. Is this justified? Proponents point to the company's 61% share of the third-party urban NOA market, deployment in nearly 700,000 vehicles, design wins for 170 models, partnerships with top-tier global automakers, expansion into over 10 countries, and the forthcoming Robotaxi launch in Munich. This track record forms the basis for a significant valuation.

However, skepticism remains. Analysts note that Momenta's 700,000 deployment figure lags behind listed ADAS chip leader Horizon Robotics (09660.HK), whose Journey series chips have shipped over 10 million units. Horizon's actual ADAS solution deployments alone exceed 2 million vehicles, nearly three times Momenta's volume. Meanwhile, Huawei's Harmony Intelligent Mobility Alliance delivered over 1.28 million vehicles in just 43 months, achieving over RMB 220 billion in annual revenue and building a formidable ecosystem advantage.

A key concern for Momenta is its technological moat. It reportedly hasn't yet mass-produced its own chips, remaining heavily reliant on third-party suppliers like NVIDIA and Qualcomm. This limits its negotiating power and vertical integration. In contrast, competitors like Horizon and Huawei have achieved a "chip + algorithm" integrated model, creating a stronger technological barrier and potentially higher profitability.

As of March 25th's market close, Horizon Robotics' market capitalization was approximately HKD 106.08 billion. In August 2024, SERES and Avatr each acquired a 10% stake in Huawei's Yinwang Intelligent Technology for RMB 11.5 billion, valuing Yinwang at RMB 115 billion. Whether Momenta's RMB 100 billion valuation will withstand market scrutiny remains to be seen.

A Hong Kong Perspective: A Launchpad for Global ADAS Expansion

For Hong Kong users, Momenta's potential listing holds local relevance. As a key RHD market, Hong Kong is already part of Momenta's global footprint. The IMAD system in IM Motors vehicles sold in Hong Kong is a testament to this. Hong Kong's sophisticated right-hand drive environment, international character, and robust legal framework offer an ideal testing and commercial ground for Momenta. A successful listing could accelerate its global expansion, potentially benefiting Hong Kong as a regional hub for ADAS technology.

Personal Opinion: Valuation Debate Highlights Industry Realities

Momenta's journey reflects the maturation of China's intelligent driving industry. From its unicorn status in 2016 to mass-producing end-to-end models in 2022 and now aiming for a public listing, it's been a decade-long path. Its market dominance and global reach underscore the industry's progress from follower to leader.

Yet, the valuation debate is a healthy one. Compared to the integrated "chip + algorithm" models of Horizon or Huawei, Momenta's pure software path faces challenges in building an unassailable moat. In the next phase of autonomous driving, full-stack competition—spanning chips, algorithms, data, and ecosystems—will likely determine the ultimate winners.

For Hong Kong users, Momenta's IPO is an important milestone. It signals that intelligent driving technology is maturing for mass adoption. As more vehicles equipped with such solutions become available globally and in Hong Kong, the era of intelligent mobility is arriving faster than anticipated. Whether Momenta's billion-dollar valuation holds up is a question for the market, but its journey itself is a compelling chapter in the story of China's automotive technology ascendancy.