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Xpeng funds robotics unit with $900m as losses widen
Dogotix, a Xpeng subsidiary, was valued at $6.3 billion in the round, and Xpeng reported a 179.0% year-on-year jump in second-quarter net loss to 1.34 billion yuan.
Chinese electric vehicle maker Xpeng said its robotics unit, Dogotix, has raised US$900 million from investors including Alibaba Group Holding and IDG Capital, aiming to accelerate work on humanoid robots.
The financing valued Dogotix at US$6.3 billion, and Xpeng said the fundraising was the biggest single private-equity deal involving a Chinese robotics maker. Xpeng positioned the push as part of its competition with Tesla in embodied artificial intelligence.
Xpeng reported that its net loss for the second quarter ending June widened 179.0% year on year to 1.34 billion yuan, as research and development costs rose 32.1%. Revenue increased 8.0% year on year to 19.7 billion yuan.
The round included commitments totaling US$600 million from backers such as Alibaba, Tencent Holdings, IDG and Gaorong Ventures, with Xpeng pledging US$200 million, according to the company.