Agricultural drone maker XAG raises US$182 million in funding round led by Baidu, SoftBank
- XAG raised US$182 million in a new funding round led by Baidu Capital and SoftBank Vision Fund II
- Competition in the agricultural drone market remains heated as DJI, the world’s largest drone maker, has sharpened its focus on commercial drones
Agricultural drone maker XAG raised 1.2 billion yuan (US$181.6 million), the company announced on Monday, marking the largest funding round to date in China’s agricultural technology industry.
Baidu Capital and SoftBank Vision Fund II led the investment round. Other investors included Kai-fu Lee’s Sinovation Ventures and two funds linked to the Guangzhou government. The company’s existing investors, Chengwei Capital and Mingtai Capital, also joined the round.
XAG’s total valuation has not been made public.
Drone maker XAG in drive to automate rice farming in China
Founded under the name XAircraft in 2007, the Guangzhou-based drone maker rebranded in 2014 and grew to become a major developer of agri-tech products. XAG is now known for its agricultural drones that help with tasks such as seeding, spraying crops, fertilisation and plant protection. Other products include remote sensing drones and an unmanned ground vehicle that helps with protecting crops, scouting fields and delivering materials on farms.
The agricultural sector has emerged as a huge opportunity for drone makers in recent years. Competition among Chinese commercial drone makers in the space is expected to remain heated in large part because of DJI. The Shenzhen-based company, the world’s largest drone maker, has sharpened its focus on industrial applications, led by its Matrice line of commercial drones.
DJI and XAG are estimated to have a combined 80 per cent share of China’s overall drone market.
Additional reporting by Che Pan
