Japan’s sexiest electric sports car lands $14M to speed into global markets

Elon Musk’s D may be built for speed, but it’s certainly not as pretty as this Japanese sports car. Neither is his company’s Model S.

Kyoto-based electric vehicle (EV) startup GLM today announced that it has raised a JPY 1.7 billion (US$14 million) series B round to bring its sexy two-seater to auto enthusiasts across the globe. GLM said in a statement that the latest investment comes from “foreign funds, overseas companies, and foreign financial institutions,” but declined to name them.

Founded in 2010 by Kyoto University graduates, GLM’s electric couple is dubbed the Tommykaira ZZ EV and is made in collaboration with the eponymous Japanese race car manufacturer. The startup produces a customizable chassis – the frame beneath the car – and Tommykaira provides the body. It can accelerate from zero to 100 km/h in 3.9 seconds – faster than all of Tesla’s creations apart from the insane P85D (which does it in 3.1 seconds).

GLM’s rolling chassis.

Tesla entered the Japanese market last year, but GLM’s latest funding proves that the startup isn’t backing down against its well-funded US rival. Tesla Japan has been offering the Model S since September 2014, but doesn’t appear to sell its competing two-seat Roadster there. If GLM was to expand its lineup, it could establish a defendable marketshare. In fact, GLM and Tesla might make for (uneasy) allies since both are looking to curb Toyota’s push for hydrogen powered cars.

Today’s investment will be used to expand domestic sales and support for the complete Tommykaira ZZ EV, as well as promoting its chassis business. That leaves the door open for additional models – perhaps a larger sedan or even a sport utility vehicle. The funding will also be used to produce a left-hand-drive model to be sold in foreign markets (in Japan, like in the UK, cars drive on the left side of the road with the steering wheel on the right).

Countries that drive on the right side of the road are marked in red.

GLM announced that it had raised JPY 800 million (US$6.6 million) just three months ago. Today’s announcement is the continuation of that round, which was led by the sovereign wealth funds of Saudi Arabia and Taiwan – further evidence of piqued interest for the ZZ EV outside of Japan. Back in 2013, the startup raised approximately US$6 million from domestic VCs including Mitsubishi Capital, Globis Capital Partners, and the Japan Finance Corporation (the Japanese government’s venture arm).

The Tommykaira ZZ EV went on sale in Japan in August 2014 for JPY 8 million (US$67,000). Pricing and availability outside of Japan is not yet available.