Caixin
Mar 18, 2021 04:55 AM
BUSINESS & TECH

Agritech Startup XAG Raises $46 Million Amid Listing Expectations

What’s new: XAG Co. Ltd., a Chinese manufacturer of agricultural drones and robots, secured 300 million yuan ($46 million) of funding amid expectations that the company is close to a public listing.

GL Ventures, a venture capital fund under Chinese asset manager Hillhouse Capital Group, disclosed the investment in XAG Tuesday.

Peng Bin, founder and chairman of Guangzhou-based XAG, told Caixin the company is valued at nearly 10 billion yuan. Peng said XAG will use the funding to increase investment in R&D and further develop its robotics products.

The background: XAG reported five funding rounds totaling 1.6 billion yuan. The previous round was completed in November 2020, when investors including Baidu Capital, SoftBank Vision Fund and Sinovation Ventures poured 1.2 billion yuan into the company.

Established in 2007 under the name XAircraft, the Guangzhou-based company rebranded to XAG in 2014 as it shifted its focus from consumer-facing drones to agricultural drones used to enhance crop production efficiency and protect plants. The company’s other major products include remote sensing drones and unmanned ground vehicles for agricultural use and smart farm management software.

Together with industry leader SZ DJI Technology Co., the companies claim a combined 90% of China’s agricultural drone market.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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