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Founded in 2013, Zongmu was a pioneer in the Chinese autonomous driving market. The company developed cutting-edge autonomous parking technologies and was recognized as one of the top suppliers of intelligent driver assistance systems. By 2023, it had captured a staggering 93% of its revenue from five major clients, showcasing its strong foothold in the market.
However, the past few years presented numerous operational challenges, particularly as the ambitious firm attempted to pivot into robotics and expand operations. This escalating cash burn rate combined with mounting debt continued to deteriorate Zongmu's financial health, culminating in three failed attempts to go public and create additional revenue streams.