IDG leads $100m Series A for China's Xpeng Robotics

The parent company and other unnamed investors also took part in the round. It is described as the largest single-tranche fundraising in the past two years for a China-based bionic robot start-up.

IDG was also an early investor in Xpeng, which is now one of China’s leading EV players with a market capitalisation of approximately USD 163bn. When the company went public in the US in August 2020, the venture capital firm held a 5.5% stake.

Xpeng Robotics is only two years younger than its parent, having been founded in Shenzhen in 2016. It is part of the broader Xpeng ecosystem of businesses, which share a common focus on the future of mobility. The company specialises in consumer-oriented technology. It expects smart robots to become a fixture in households over the next two years.

As of the end of June, Xpeng Robotics had more than 300 employees, 80% of whom were R&D staff with expertise in robotics, artificial intelligence (AI), automotive design and manufacturing, and the internet. Headquartered in Shenzhen, it has R&D centres in Guangzhou, Beijing, and Silicon Valley.

Key focus areas include robot powertrain, locomotion control, robot autonomy, robot interaction, and AI, according to a statement. The company claims to be among the first in China to develop robots with walking capability. Its first product is a four-legged robot equipped with a household-use robotic arm and multi-modal emotional interaction function.

"The household robot market, still in its initial exploration phase, presents immense potential. Different entrepreneurial teams are innovating to create different products,” said Guangfu Cui, a partner at IDG.

“The R&D development of Xpeng Robotics and Xpeng complement each other, creating a unique competitive advantage. We expect that Xpeng Robotics will achieve innovative breakthroughs through extensive R&D investment to open up the household robot market.”

The Series A proceeds will go towards R&D investment in robotic hardware and software, recruitment, the acceleration of product development and iteration, and technology upgrades.

Most of the VC funding in China’s robotics space has gone to start-ups developing manufacturing, logistics, and warehouse solutions. For example, bin picking specialist XYZ Robotics recently closed a USD 40m Series B round. Other use cases include surgical procedures and hotel and restaurant services.

Meanwhile, vacuum cleaner manufacturer Dreame, has introduced robots that can sweep and mop floors. The company raised a CNY 3.6bn (USD 563m) Series C round last year.

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• Topics
• Greater China
• Early-stage
• Technology
• China
• hard-tech
• IDG capital