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Will this robot start-up be the next Tencent in the era of artificial intelligence?

Tencent’s ex-tech chief has led a US$53.6 million funding round in Roobo, a Chinese robot start-up

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Roobo, a Beijing-based robot start-up, has secured another US$53.6 million in funding, lifting its valuation close to US41 billion. Photo: Jamie Carter

Seven Seas Partners, a venture capital firm founded by Tencent Holdings’ former chief technology officer, has led a 350 million yuan (US$53.6 million) funding round in a Chinese start-up, betting big to find the next Chinese tech giant in the robot sector.

The funding for Roobo, a Beijing start-up that sells conversational service robots, would lift the firm’s valuation close to that of a unicorn – private companies valuated at US$1 billion or more, according to the company’s chief executive Liu Yingbo.

Apart from the capital injection announced on Wednesday, Jeff Xiong Minghua, who was Tencent’s CTO for eight years until his departure from the social networking giant in 2013, will also serve as the chairman of the board of Roobo.

“I really hope that I can find and cultivate the next Tencent in China. The thing that I regretted most when leaving Tencent was that I didn’t help turn the company into a truly globalised company, ” said Xiong. He said the artificial intelligence (AI) era provided China with real opportunities to produce global companies.

Companies with multibillion-dollar valuation are very likely to be those involved in service robotics and the Internet of Things, as Xiong estimates that there will be 10 billion smart devices in use in China, with more hardware – from home appliances to cars – being connected to the internet.

Roobo’s CEO Liu Yingbo (second from right) said they were banking on former chief technology officer of Tencent, Jeff Xiong Minghua’s (second from left) experience and vision in the industry to help them become a “big player” at home and abroad. Photo: SCMP handout
Roobo’s CEO Liu Yingbo (second from right) said they were banking on former chief technology officer of Tencent, Jeff Xiong Minghua’s (second from left) experience and vision in the industry to help them become a “big player” at home and abroad. Photo: SCMP handout
The investment comes amid the rising interest in AI in China, where the central government has unveiled a top-down nationwide plan in July through a three-step approach to become a global AI leader by 2030.
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