(Yicai) Aug. 25 -- The robotics subsidiary of electric carmaker Xpeng Group has raised more than USD900 million in its first financing round, setting a new record for a Chinese embodied intelligence firm and valuing the business in excess of USD6.3 billion.

IDG Capital led the fundraiser for Xpeng Dogotix, with Gaorong Ventures also taking part, its parent company announced in an exchange filing yesterday. In addition, Dogotix received support from strategic investors Tencent Holdings and Alibaba Group Holding.

“This fundraiser introduces internationally renowned investment institutions and strategic investors to our robotics business, providing ample resource support for the rapid development and sustained leadership of Dogotix,” Xpeng’s founder and Chairman He Xiaopeng said. “It is also expected to attract more top talent in physical AI to join us."

The outside backers put in USD600 million, Xpeng USD200 million, and entities controlled by He and other executives the rest. Xpeng will own 82 percent of Dogotix after the raise, which could be diluted to 68.4 percent if the executives exercise their additional subscription warrants.

The proceeds will go mainly to researching and developing Dogotix’s software and hardware, training physical artificial intelligence models, collecting high-quality data, building full-chain mass production bases, and expanding the company’s global commercialization, Xpeng noted.

Like Tesla and Chinese carmakers such as GAC Group and Changan Automobile, Xpeng is betting that technology and processes developed for intelligent new energy vehicles offer an advantage in the intensifying race to commercialize humanoid robots. The Guangzhou-based company launched its first humanoid toward the end of 2023, and its automotive-grade Iron android in late 2024.

‘Solid Foundation’

“Xpeng is systematically transferring its full-stack research and development capabilities, supply chain, and manufacturing systems accumulated over more than a decade in the intelligent NEV sector to its robotics business, laying a solid foundation for the industrialization of humanoid robots,” Gaorong Ventures said.

“We look forward to working with Xpeng to bring the innovative achievements of China's physical AI to the global market,” the Beijing-based venture capital firm added.

Dogotix’s humanoid robot factory in Guangzhou started small-batch trial production of its Iron product last month and is expected to achieve mass production by the end of the year. The robots will initially be used in the company’s retail stores and other commercial settings, with deliveries in China and to overseas markets starting next year.

Iron is a highly advanced humanoid that is highly anthropomorphic, AI-driven, and built to the highest safety and quality standards. Its goal is to become the next-generation, general-purpose android, supporting a wide range of applications and self-enhancement in the real world, according to Xpeng.

Xpeng’s shares [HKG: 9868] closed 9.2 percent lower at HKD43.30 (USD5.52) in Hong Kong today following yesterday’s release of the firm’s latest earnings report, which showed a near tripling of its second-quarter loss and offered weaker-than-expected third-quarter guidance.

In the three months ended June 30, the net loss widened 179 percent from a year ago to CNY1.3 billion (USD199.3 million), while revenue climbed 8 percent to CNY19.7 billion (USD2.9 billion). Vehicle sales rose 1 percent to CNY17.1 billion, and the firm delivered 103,295 vehicles.

For this quarter, Xpeng expects to deliver between 115,000 and 121,000 cars, below the market consensus for about 147,000, and forecasts revenue of CNY21.7 billion to CNY23.4 billion, also below expectations.

Editor: Futura Costaglione