Volkswagen China invests $180m in VC-backed Mobvoi
Volkswagen's China unit has agreed to invest $180 million in Beijing-based Mobvoi, a venture capital-backed start-up that is developing artificial intelligence (AI) technology for the automotive sector.
The investment will support a 50-50 joint venture between the two companies that will use AI-related applications to advance smart transportation innovations, including autonomous driving. This includes a focus on voice recognition, natural language processing, vertical search and proactive search technologies.
“We are impressed by Mobvoi’s innovative approach of AI technology, and we are pleased to form this joint venture to explore the next generation of smart mobility,” Jochem Heizmann, president and CEO of Volkswagen China, said in a statement. “With the new joint venture we promote people oriented mobility for our customers in China, along with the potential to be adopted globally.”
Founded in 2012, Mobvoi claims to be the only company in China with its own voice recognition, semantic analytics and search technologies. It is best known for its smart watch product called Ticwatch, which is equipped with a SIM card, GPS module and a heart rate sensor. Work in the automotive space has included the development of a point-of-interest search system, instant messaging, on-board voice-activated entertainment and a smart rearview mirror, which provides navigation support.
Previous investment in the company includes a $75 million Series C round in 2015 with participation from Google, Sequoia Capital China, ZhenFund and Susquehanna Asia Investment. Susquehanna led a Series B a year earlier worth almost $10 million alongside Sequoia and ZhenFund. Strategic backers have also included Chinese sound equipment developer GoerTek and Hong Kong-based display components provider Perfect Optronics.
Asia has emerged as a potential industry leader in smart car technology development following the launch of a dedicated fund by China’s state-owned car maker SAIC Motors and Alibaba Group in 2015. Investment has been supported by the rapid increase of vehicle sales in emerging economies and government modernization policies encouraging cross-border activity.
Recent private equity activity in this space includes a $16 million investment led by US and China-based Highland Capital Partners for NuTonomy, a company aiming to commercialize a driverless taxi fleet in Singapore by 2018. Meanwhile, China’s Leshi Internet Information and Technology has raised about $1 billion for a self-driving electric car project.
Earlier this year, Global Brain led a Series A of undisclosed size for Trillium, a Japanese cybersecurity company focused on autonomous, internet-enabled vehicles.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.