XPeng Robotics Unit Raises $900 Million At $6.3 Billion Valuation

XPeng's robotics division has raised more than $900 million in its first external funding round at a post-money valuation above $6.3 billion, the company said Aug. 24. XPeng described it as the largest single-round private financing in China's embodied AI sector.   

IDG Capital led the round, with Gaorong Ventures participating and Tencent and Alibaba investing as strategic backers. About $600 million came from external investors, $200 million from an XPeng subsidiary and $100 million from company leadership, including Chairman He Xiaopeng and Co-President Brian Gu, according to a Hong Kong Stock Exchange filing cited by CnEVPost. XPeng will initially hold about 82% of the new company, named Dogotix, a stake the filing says could fall to about 68% once warrants and employee incentive shares are exercised. 

XPeng says it will begin mass production of its IRON humanoid robot by the end of 2026, placing the first units in its own stores and campuses, with a commercial launch and deliveries in China and overseas planned for 2027. The filing puts target capacity at more than 1,000 units a month, per CnEVPost. All of those dates are company targets, not results. 

The raise landed on a difficult day for the parent. XPeng's Hong Kong-listed shares fell 8.5%, their largest one-day loss since November, MarketScreener reported, after second-quarter revenue of 19.74 billion yuan missed the 20.57 billion yuan analyst consensus and third-quarter guidance came in below expectations, according to Investing.com. 

The $6.3 billion private mark arrived five days after rival Unitree Robotics listed in Shanghai. Unitree priced its IPO at a $9 billion valuation, CNBC reported, and the stock rose 460% on debut to a market value of about $66 billion, according to Fortune. 

He has set expectations far beyond the current business. Annual sales of XPeng robots "may exceed 1 million units" by 2030, he told analysts on the company's November earnings call, according to 36Kr. XPeng has not disclosed a price for IRON, and it has not said whether any robots have been produced or delivered beyond demonstration units.