Aviation Electric Propulsion Firm Yujia Power Raises Seed Capital

Yujia Power Technology (Changzhou) Co., Ltd., a Chinese developer of electric propulsion systems for aviation, has successfully closed two significant funding rounds, securing tens of millions of yuan. The capital infusion, comprising Angel+ and Angel++ rounds, was backed by prominent investors including Yihua Investment, Yuanhe Holdings, Chang Gao Xin, and Chang Jin Kong. This latest funding follows an initial Angel round last year, bringing the company's total fundraising within approximately twelve months to nearly 100 million yuan. The newly acquired capital will be strategically allocated to bolster technological research and development, expand the talent pool, and scale up production capabilities.

Founded in early 2024, Yujia Power is dedicated to creating lightweight, highly reliable, and high-performance electric propulsion solutions, often referred to as the 'Chinese heart' for mid-to-large-sized electric aircraft and specialized equipment. The company's core team brings extensive expertise, with its founder, Liu Ye, holding advanced degrees in electrical engineering from Nanjing University of Aeronautics and Astronautics. The founding team collectively possesses over a decade of experience in the research and industrialization of aero-electric propulsion systems, drawing talent from leading academic institutions and renowned aviation research institutes within China.

The global aviation sector is undergoing a pronounced shift towards electrification, characterized by advancements in multi-electric architectures and rapid technological evolution. Market projections indicate substantial growth, with the global commercial aircraft electrical systems market anticipated to expand from approximately $14.7 billion in 2025 to $20.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.8%. Notably, the Chinese market is expected to outpace this global trend, with a projected CAGR of 8.5%. Yujia Power is strategically positioned within this expanding market, focusing on the development of electric propulsion and power generation systems, encompassing products ranging from 12kW to 500kW for propulsion and 25kW to 1MW for power generation.

A key differentiator for Yujia Power lies in its cost-efficiency strategy. By optimizing product design and material sourcing, the company aims to reduce manufacturing costs to two-thirds or less of current market leaders. This approach is crucial in an industry where raw materials, particularly high-temperature alloys and titanium alloys, can constitute 40-60% of production expenses. The company's commitment to simplifying complex technologies for industrial application, prioritizing reliability and cost-effectiveness without compromising performance, is a cornerstone of its strategy.

Yujia Power's journey is underpinned by a strong foundation in academic research and early-stage customer engagement. The team's technical groundwork dates back to around 2017, during the founder's doctoral studies. Through providing technical services, they built early customer trust and gained valuable market insights. The transition to product supply was accelerated by significant pre-payments totaling nearly 10 million yuan from two long-term clients, who sought direct product delivery and provided crucial seed capital for the startup. This early support underscores the market's demand for dependable power systems.

Currently, Yujia Power serves clients in the civil low-altitude sector, including eVTOL manufacturers, as well as customers in specialized applications requiring robust performance in challenging environments like high altitudes and extreme cold. With nearly ten airframe manufacturers already collaborating with the company, Yujia Power anticipates a substantial increase in order volume, potentially tripling to quintupling its output this year as its clients advance through certification and operational validation phases. To accommodate this growth, the company has established a new manufacturing facility in Changzhou, designed for an annual output value of 300 million yuan, with plans to further expand capacity to produce 1,000 power systems annually.