On August 13, Zhang Xue Motorcycle announced the completion of a new financing round, secured through an exclusive investment from Sequoia Capital China, with a post-investment valuation reaching $6 billion. Starting from a seed round valuation of $100 million in July 2024, the company has skyrocketed to a $6 billion valuation in just two years, marking a 60-fold increase. This rapid ascent has propelled Zhang Xue Motorcycle from a startup to a quasi-unicorn in the motorcycle industry.
According to Cao Bin, an angel investor and chairman of Gaoxin Capital, Sequoia China invested approximately $150 million in this round, resulting in a post-investment valuation of $6 billion. Following the completion of the financing, the two parties will cooperate deeply on corporate governance, talent development, industrial resources, and global expansion.
Business momentum accelerates
Founded in April 2024, Zhang Xue Motorcycle achieved total output value of $750 million and delivered 25,000 units in its first full sales year by 2025. This year, the company is entering a faster growth trajectory. Public information shows that Zhang Xue Motorcycle posted revenue of $670 million in 2025, with 2026 revenue expected to reach $2 to $2.5 billion. In terms of production capacity, monthly output exceeded 10,000 units in June, prompting the company to reward each employee with half a month's salary as a bonus. Cumulative deliveries in the first half of the year reached approximately 22,000 units, generating revenue of about $650 to $700 million. With the launch of several new models in the second half, the company expects full-year deliveries to exceed 62,000 units, with revenue potentially surpassing the $2 billion mark.
Founder Zhang Xue has publicly stated that the company's break-even point is at $1.5 billion in sales, with profitability achievable at $2 billion. This suggests that Zhang Xue Motorcycle is on track to achieve its first full-year profit in 2026, exiting the most dangerous phase of its startup period. On the WSBK (World Superbike Championship) circuit, Zhang Xue Motorcycle has already secured six race wins in 2026, achieving a breakthrough for Chinese brands at this top-tier event. These racing results have directly translated into order growth, with sales of the championship-winning 820RR model rising by 200% and the 500RR by nearly 100%, leading to domestic orders backlogged until June. During the Canton Fair, the company received overseas orders for over 1,000 units and signed agency agreements with more than 20 international buyers.
Looking ahead, Zhang Xue Motorcycle has set even more ambitious targets: a sales goal of 100,000 units for 2027 and 200,000 units for 2028. The company recently acquired 200 mu of industrial land in Chongqing, and the new production base is expected to boost overall capacity by 3 to 5 times after it becomes operational. In 2026, the company will launch seven new models, with a research and development budget increasing to $135 million, maintaining a high proportion of investment in the industry.
Capital expansion continues
In July 2024, Gaoxin Capital invested $20 million exclusively in the seed round, resulting in a post-investment valuation of $100 million. In January 2026, the Zhejiang Venture Capital Group led a Series A round with $90 million, pushing the post-investment valuation to $1.09 billion. Now, just six months later, Sequoia China has entered the fray with a $150 million investment, driving the valuation to $6 billion. Behind this surge is deep investor recognition of founder Zhang Xue and the company's technological approach.
Zhejiang Venture Capital's general manager, Cheng Junhua, has noted that to overcome critical technological bottlenecks, such as three-cylinder engines, Zhang Xue Motorcycle has invested over 9% of its revenue in R&D, and this "strategic loss" precisely demonstrates the company's extreme pursuit of technology. Through this investment, Zhejiang Venture Capital has also introduced mature motorcycle industry chain resources from Jinhua to Zhang Xue Motorcycle.
Sequoia China's involvement is no coincidence. According to data from Inniu Data, Sequoia invested in two consecutive rounds in the smart electric motorcycle brand OMOWAY in June 2025 and January 2026, and led an investment in the cargo electric bicycle R&D manufacturer Xunlu Innovation in July 2025. Combined with previous investments in Sanshou Technology, Lingyun Intelligence, and Niutech Technology, Sequoia has largely completed its puzzle in the "two-wheeled mobility" track. Zhang Xue Motorcycle's performance-oriented motorcycle route perfectly fills the gap in Sequoia's portfolio for fuel-powered big-displacement motorcycles.
Industry benchmark: who dominates the big-displacement track
The rise of Zhang Xue Motorcycle is inseparable from the structural opportunities in China's big-displacement motorcycle market. In 2025, domestic sales of leisure motorcycles with displacements above 250cc reached 954,200 units, a year-on-year increase of 26.10%, making it the fastest-growing and most robust segment in the industry. For exports, big-displacement models sold 535,000 units, up 49.0% year-on-year, with high-end internationalization becoming a new growth driver for the industry.
In this track, CFMoto (603129.SH) stands as the undisputed industry benchmark. In 2025, CFMoto achieved revenue of $19.746 billion, up 31.30% year-on-year, and net profit attributable to parent company of $1.675 billion, up 13.83%. Among these, its fuel motorcycle business generated revenue of $6.471 billion, up 7.18% year-on-year, with domestic sales of road bikes above 200cc ranking first in the industry. All-terrain vehicle revenue reached $9.608 billion, up 33.26% year-on-year. As of August 13, CFMoto's market capitalization stood at approximately $43.2 billion, with a TTM P/E ratio of about 25.7 times.
Turning to Loncin Motor (603766.SH), it reported revenue of $19.135 billion in 2025, with motorcycle business revenue of $14.127 billion. As a veteran industry leader, Loncin has successfully entered the high-end market through its "Wuji" brand, validating the profitability of the big-displacement motorcycle track. Qianjiang Motorcycle (000913.SZ) posted revenue of $5.414 billion in 2025, owning brands like Benelli and QJMOTOR, and exported 51,300 big-displacement units, up 23.36% year-on-year. However, due to a slowdown in domestic consumption and price competition, its non-recurring net profit declined by 49.20% year-on-year.
Comparing Zhang Xue Motorcycle with these three listed companies, its growth momentum is the most explosive. CFMoto took over 20 years to go from founding to nearly $20 billion in annual revenue, while Zhang Xue Motorcycle could reach $2 billion in revenue in just over two years. However, although Zhang Xue Motorcycle has the strongest growth potential, its product line is relatively narrow, its brand history is short, and its channel coverage is still expanding, all of which will take time to address.
The golden age of domestic motorcycles
From an industry perspective, China's motorcycle industry is undergoing a qualitative transformation from "Made in China" to "Created in China." In 2025, China's total motorcycle export value reached $10.937 billion, up 23.85% year-on-year. Chinese brands are accelerating global market penetration, leveraging a complete industrial chain, leading product capabilities, and high cost-performance advantages.
Zhang Xue Motorcycle plays a unique role in this wave, using its WSBK championship trophies to prove that domestic big-displacement motorcycles can compete head-on with international brands. This is not just a victory for Zhang Xue Motorcycle alone but also boosts the global brand image of the entire Chinese motorcycle industry. Sequoia China's exclusive $150 million investment is not just about a star startup project; it reflects confidence in the entire domestic big-displacement motorcycle track. From Chongqing to the global stage, and from a repair apprentice to a $6 billion valuation, Zhang Xue Motorcycle's capital journey is just entering the fast lane.