Watson Rally Secures Nearly 100 Million RMB in Series A Financing, Blue Lake Capital Increases Investment

Watson Rally, a leading domestic Electro-Mechanical Braking (EMB) company, announced the completion of its Series A financing round in early 2025, totaling nearly 100 million RMB. This round was co-led by Vinno Capital (合创资本) and Junke Danmu Investment (君科丹木), with follow-on investments from existing shareholders Blue Lake Capital, Xiaomi Strategic Investment (小米战投), Shunwei Capital, and Chentao Capital.

Over the past six months, the Electronic-Mechanical Brake-by-wire System (EMB) sector has been gaining significant momentum. The revised EU ECE R13 EMB technical standard is expected to be officially released in the second half of 2025, while the revised China GB 21670 standard, which includes the Electrical Transmission Braking System (ETBS), has entered the approval process and is planned for release in mid-2025, with implementation scheduled for 2026. The coordinated advancement of domestic and international standard systems is accelerating the industrialization of EMB technology. As OEMs accelerate the restructuring of their E/E architectures and international Tier 1 suppliers continue to increase their investments, EMB is transitioning from the early technology validation stage to readiness for large-scale mass production, establishing it as the definitive key technology track in the era of intelligent automotive.

As the earliest high-tech enterprise in China to focus on the development and mass production of EMB products, Watson Rally was established in 2022 by Founder and CEO Cai Xudong. Its core team has extensive experience in the automotive braking sector and has cultivated a rare and distinctive expertise for mass production, with members who have backgrounds in leading international automotive parts suppliers and renowned domestic listed companies. They share nearly 2 decades of close collaborative experience, having led the forward development, mass production and delivery of tens of millions of braking system units. They have accumulated internationally leading practical experience in manufacturing, quality control and market responsiveness, providing a solid foundation for Watson Rally’s large-scale EMB mass production and quality assurance.

Currently, the company is advancing production nomination and vehicle integration for EMB projects with multiple leading OEMs, securing a leadership position in the commercialization process.

Founder Cai Xudong stated: “EMB, widely recognized as the ultimate braking solution, is rapidly transitioning from validation to large-scale application. The roadmap for global commercialization is becoming increasingly well-defined, and the industry landscape is undergoing rapid restructuring. Since its inception, Watson Rally has remained focused on the forward development and commercial implementation of EMB. Leveraging our team’s profound expertise in braking systems, we continue to lead the industry in product advancement, engineering efficiency and customer responsiveness. We have achieved key milestones in several core projects and made substantial breakthroughs on the market business front.” He also emphasized: “This financing round will accelerate production line construction and system improvements, supporting EMB products’ safe and efficient journey to mass production. Watson Rally is committed to collaborating with industry partners to become a trusted Chinese force in the global intelligent chassis revolution.” Regarding future developments, he revealed: “To meet the demands of multi-platform vehicle model expansion, the company has planned its next financing stage and will continue to consolidate its competitive advantage in the EMB field.”

Ray Hu, Founder and Managing Partner of Blue Lake Capital, commented: “Blue Lake Capital, as the lead investor in the previous financing round, has stood shoulder-to-shoulder with Watson Rally. We have been deeply impressed by the team’s focus and resilience, and have witnessed the company successfully achieving each phase of its strategic goals. Our increased investment in the Series A round reflects both our full confidence in the team’s capabilities and our firm optimism about the company’s future development. With the rapid transformation of the chassis-by-wire industry, Watson Rally is poised to leverage its leading technological strength and commercialization capabilities to emerge as a key player in the global braking systems landscape.”

Source: Watson Rally