China’s Robotics Start-ups Attract Surge in Venture Capital Investment

China’s robotics start-ups are experiencing a surge in venture capital investment, positioning the sector as a potential powerhouse similar to the country’s electric vehicle industry.

In the first two months of the year, humanoid robot developers secured nearly 2 billion yuan (USD 276 million) across 20 deals, a sharp increase from 1.2 billion yuan raised in four transactions during the same period last year, according to ITJuzi.

China is emerging as a global leader in humanoid robot development, with the domestic industry expected to achieve mass production and commercialisation by 2025. A Morgan Stanley report found that 56% of the 100 publicly traded companies involved in humanoid robotics development are based in China. The country is also home to 45% of the world’s robot integrators, which customise robots for specific end-user needs.

Several Chinese robotics start-ups announced new funding rounds on Thursday. LimX Dynamics, AI2Robotics, and Eyoubot all secured fresh investments.

LimX Dynamics completed a series A+ funding round, following its series A financing in July. The company raised a total of 500 million yuan from both rounds, with investors including China Merchants Group, electric vehicle maker Nio, and Alibaba Group Holding. Founded in 2022, LimX Dynamics develops humanoid robots designed for heavy lifting in factories and warehouses.

AI2Robotics raised more than 100 million yuan in its latest funding round, backed by Dunhong Capital and Yunqi Capital. Two months ago, the company secured “hundreds of millions of yuan” from Dunhong Capital, Fortune Capital, and CoStone Capital. AI2Robotics has signed agreements with major domestic and international automotive companies and reported sales worth “tens of millions of yuan” in 2024.

Both LimX Dynamics and AI2Robotics are based in Shenzhen, a hub for robotics innovation. The city is home to the “magnificent eight” robot enterprises, including Hong Kong-listed UBTech Robotics and EngineAI, which recently demonstrated the world’s first front-flip by a humanoid robot.

Eyoubot, another robotics start-up, completed a series A funding round, raising 50 million yuan. Founded in Wuxi, the company plans to relocate to an industrial estate in Shanghai. Eyoubot specialises in robotic joints and expects to ship approximately 180,000 units this year, up from around 30,000 in 2024.

Investor interest in robotics has intensified following Unitree’s high-profile showcase of its humanoid robots. The company’s H1 humanoid robots performed at this year’s Spring Festival Gala, China’s most-watched television event, which drew over 1 billion viewers.

However, Unitree recently warned of scams targeting investors looking to acquire shares in the privately held company. Founder Wang Xingxing was seen attending a high-profile business symposium hosted by Chinese President Xi Jinping last month.

The Chinese government is also prioritising the robotics sector. In its latest work report presented at the annual meetings of China’s top legislature and advisory body, the term “embodied intelligence” was mentioned for the first time. This refers to artificial intelligence applications in physical systems, such as robots.

The state plans to establish a mechanism to support investment in futuristic industries, including embodied intelligence, as part of its broader strategy to advance technological innovation.

China’s robotics start-ups secured nearly 2 billion yuan (USD 276 million) in funding in early 2024, up from 1.2 billion yuan last year.
LimX Dynamics, AI2Robotics, and Eyoubot announced new financing rounds.
Shenzhen remains a key robotics hub, home to leading start-ups and innovators.

Source: SCMP