Local investors pump $54m into China's Rokid
Rokid, a China-based company specialising in augmented reality (AR) technology, has raised CNY384m（USD53mn）across two tranches, largely from state-linked investors.
The first tranche comprises CNY 125m from Yuhang State-owned Capital Investment Group, a Hangzhou-based government guidance fund. The second, worth CNY 259m, came from Dunhong Capital Management, Ganbei Investment, Chunxiao Digital Publishing Fund and Wuxi Haichuang Investment. All four investors are based in Zhejiang province.
The Hangzhou-based startup which currently has a team of around 380, announced a two-tranche Series C of USD 160m earlier this year. The identities of the investors were not disclosed. Rokid said at the time that they were "related ecosystem players," which could include customers and supply chain partners.
The company's previous funding round, in 2018, was led by Temasek Holdings and featured IDG Capital, CDIB Capital, and Credit Suisse. The size of the investment was not disclosed, but local media put it at USD 100m. This was also designated as a Series C, so it might be part of the subsequently announced USD 160m investment.
Rokid was valued at around USD 450m in 2017 on entering a partnership with Alibaba Group. A year earlier, IDG and Walden International led a USD 65m Series B with additional participation from Advantech Capital. Other early investors include Linear Venture, Shanghai Moliang Venture Capital, and Vision Plus Capital.
The company has shifted focus in recent years. It started out as a smart speaker manufacturer, offering devices that control light, temperature and music through voice-activated interfaces. The initial Series C tranche was intended to support growth in this area.
Now, though, Rokid is positioned as more of an AR specialist, specifically for enterprise use cases. The company's X-Craft headset - resistant to explosions, water, and dust and equipped with 5G and GPS capabilities - is aimed at the automotive and oil and gas industries where field workers need remote communication devices.
It has also released a line of smart glasses that can detect the temperatures of up to 200 people within two minutes - a clear COVID-19 play. Other start-ups in China's AR glasses space, such as PE-backed Nreal, primarily target the consumer segment.
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