Chinese drone maker gets $75m from Accel

Set up in 2006 and headquartered in Shenzhen, DJI develops aerial robotics technology for commercial and recreational use. The drone that crashed on to the lawn of the White House while being piloted by an inebriated US government employee in January was a DJI model. As a result, the company introduced firmware preventing entry into the Washington DC no-fly zone.

The Phantom series - now in its third iteration, which features a four-megapixel high-definition video camera - is said to be the world's most popular consumer drone. It sells for between $999 and $1.259. DJI also manufacturers flight platforms that can be customized to carry different cameras, flight controllers, propulsion systems, and related accessories.

These products are used by customers in more than 100 countries for applications including film, construction, inspection, nature conservation, firefighting, and agriculture. The funding from Accel will be used to accelerate adoption of DJI's products and extend its reach into new industrial applications.

The company owes its origins to CEO and founder Frank Wang's passion for remote-controlled helicopters. A recent profile by Forbes reveals that Wang received his first model helicopter while at high school. As a student at Hong Kong University of Science & Technology, he skipped classes to work on his final group project - a flight control systems that ultimately became DJI first product line.

Wang built prototype controllers out of his dorm room and then moved to Shenzhen, where he sold components for DIY drones. By 2012 DJI had developed all the pieces for a complete drone package and the ready-to-fly Phantom launched in January 2013.

The company's sales are said to have tripled or quadrupled every year between 2009 and 2014, reaching $500 million last year when about 400,000 units were cleared. Sales are expected to top $1 billion in 2015. Frost & Sullivan estimates that DJI accounts for 70% of the global consumer drone market. Sequoia Capital invested in the company last year, reportedly putting in around $30 million.

"DJI is quickly establishing itself as the owner of the world's most powerful robotics platforms," said Sameer Gandhi, a partner at Accel, in a statement. "The democratization of the skyways is well underway with affordable access to UAVs allowing people and companies to rethink what's possible. It's a privilege to partner with such a remarkable company and such an authentic team of entrepreneurs."

This is the largest investment in a Chinese drone manufacturer, but not the first. Last September Chengwei Capital Partners invested $20 million in XAircraft Aerial Solutions, while in January GGV Capital led a $10 million Series A round for EHang.

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• Topics
• Venture
• Greater China
• Technology
• Expansion
• Accel Partners
• China
• Venture
• Growth capital
• Technology