XPeng Robotics, the smart robotics arm of Chinese electric vehicle (EV) maker XPeng, has entered into an agreement with a consortium of investors to raise over $100 million in its Series A funding round, the startup announced on Tuesday.
The Series A round, which is led by IDG Capital with XPeng also participating, will enable XPeng Robotics to further increase its R&D investment in robotic hardware and software, step up talent acquisition, and speed up product iteration in its attempts to boost technology and product competitiveness, it said in a press release.
The startup sealed one of the largest venture deals in China’s bionic robot sector as it expects to introduce its intelligent robots to consumers and households in the next two years. Its first product is a quadruped robot with autonomous navigation and emotional interaction functions that can entertain and transport.
Cui Guangfu, a partner at IDG Capital, said: “The household robot market, still in its initial exploration phase, presents immense potential.”
“Smart mobility and intelligent robotics are developing at a speed that’s exceeding expectations. We are a strong believer that the new technology-defined era will transform imagination into reality in our generation. I also believe that in the future, manufacturers of smart cars will also be manufacturers of smart robots, creating 1+1 >2 synergy,” said He Xiaopeng, Chairman and CEO of XPeng.
Founded in 2016, XPeng Robotics specialises in robot powertrain, locomotion control, robot autonomy, robot interaction, and artificial intelligence (AI). The Shenzhen-based startup has R&D centres in Guangzhou, Beijing, and Silicon Valley, employing more than 300 people as of end-June 2022.
He is looking to generate synergies between XPeng and its spin-off entities as he leads the firm to build a futuristic mobility ecosystem. While XPeng Robotics focuses on consumer-oriented robots, another XPeng affiliate called HT Aero is targeting to deliver intelligent electric flying vehicles at scale. HT Aero announced in October 2021 the completion of its Series A round at over $500 million from lead investors including IDG Capital, 5Y Capital, and XPeng itself.
These affiliates are expected to help XPeng challenge competitors including Tesla, which is also working on a humanoid robot named Optimus and is planning to move it into production next year.
XPeng had raised $1.72 billion from an initial public offering (IPO) on the New York stock exchange in August 2020, before it completed a $1.8-billion dual-primary listing in Hong Kong in July 2021.