(Yicai Global) July 21 -- Global chemical giant BASF, which counts China as its third-largest market, will invest in its first animal husbandry startup in the Asian country, namely SmartAHC that uses artificial intelligence to optimize pig breeding in the world's largest market for pork.

BASF Venture Capital will participate in SmartAHC's Series A+ round of financing, the Ludwigshafen-based firm said in a press release yesterday, without disclosing the sum. Shenzhen's Sinoagri E-Commerce led the round, also participated by Germany's Evonik Industries.

Founded in 2014, the Shanghai-based startup uses sensors and camera systems to monitor livestock and increase production efficiency by reducing human intervention. It was established by graduates of Singapore's Nanyang Technological University.

SmartAHC will use the proceeds of the funding round to boost its research and development efforts and expand its market presence, the statement added.

"SmartAHC’s technology can contribute substantially to animal health as well as to economic optimization along the pork value chain," said Markus Solibieda, managing director of the VC firm. "Our investment complements BASF's strategy of promoting sustainability and healthy nutrition."

China is BASF's biggest market after Germany and the US. Last year, it made EUR7.3 billion (USD8.4 billion) in sales in the Asian country.

Editor: Emmi Laine