Xpeng's robotics subsidiary Dogotix raises US$900 million in funding round
The financing values the Chinese robotics firm at US$6.3 billion, marking a record private-equity deal in the sector.
Quick Look
- Dogotix, an Xpeng subsidiary, secured US$900 million in a funding round, reaching a US$6.3 billion valuation.
- The investment, supported by Alibaba and Tencent, aims to accelerate development of humanoid robots and physical AI to compete with global rivals like Tesla.
AI-generated summary
Why It Matters
Xpeng is expanding into humanoid robotics to compete with Tesla in the embodied AI market. The company recently reported a widened net loss for the second quarter alongside increased R&D spending.
Dogotix, a subsidiary of Xpeng, raised US$900 million in the latest round of financing, which valued it at US$6.3 billion, Xpeng said in a statement on Monday, adding that the fundraising marked the biggest single private-equity deal involving a Chinese robotics maker.
The fresh capital would give Xpeng a shot in the arm as it joins the fray against Tesla to build and sell humanoid robots to tap global investor enthusiasm in embodied artificial intelligence.
“I believe Xpeng will not only build one of China’s most valuable humanoid robotics companies, but also become a global leader in physical AI, spearheading the large-scale adoption and commercialisation of advanced general-purpose humanoid robots and autonomous driving technologies in China and overseas,” He Xiaopeng, co-founder and CEO of the company, said in the statement.
On Monday, Xpeng said its net loss in the second quarter ending June widened 179 per cent from a year ago to 1.34 billion yuan (US$199.4 million) amid a 32.1 per cent jump in research and development costs. Revenue rose 8 per cent to 19.7 billion yuan year on year.
Backers including Alibaba, owner of the South China Morning Post, Tencent Holdings, IDG and Gaorong Ventures agreed to invest a combined US$600 million into Dogotix, while Xpeng itself pledged US$200 million, according to Xpeng.
Open Questions
- What is the specific timeline for commercial product release?
- How will the funds be allocated across R&D departments?
