China augmented reality start-up Rokid gets US$70 million in new funding round led by Hefei government

Chinese augmented reality (AR) technology firm Rokid has raised nearly half a billion yuan in its latest round of funding led by a local Chinese government, in a fresh indication of the backing from authorities for tech start-ups.

Rokid said in a statement on Wednesday that it has raised 500 million yuan (US$70 million) in its latest funding round with the municipal government of Hefei, capital of central Anhui province, as a lead investor. As part of the deal, Rokid signed an investment and cooperation agreement with Hefei to advance the local metaverse industry.

Chinese authorities have increasingly stepped up as private equity investors in projects in line with local development strategies. As a quid pro quo for funding, local governments generally require these start-ups to make local investments.

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Under the Hefei deal, Rokid will set up its industrial metaverse headquarters, ecosystem hub and research and development (R&D) centre in Hefei's New Station Hi-Tech Zone, tapping into the Chinese city's emerging ecosystem including micro-displays, the metaverse and other areas.

"We are honoured to contribute to advancements in science/technology ... through our innovations," said Misa Zhu, founder and CEO of Rokid, adding that the company will focus on cutting-edge R&D and user experience optimisation.

"Looking ahead, we will maintain a focus on achieving technological milestones and enriching our ecosystem to empower developers and deliver superior products that benefit consumers and enterprises globally", Zhu said.

Hong Fan, chairman of Hefei New Venture Investment Control, an investment vehicle under the Hefei government, added that the cooperation aligns with Rokid and the city's efforts to drive innovation on metaverse applications and technologies.

"The cooperation between Rokid and Hefei builds on a shared vision to cultivate extended reality [XR]/metaverse industry development, " Hong said.

XR is an overarching term that includes AR, virtual reality, and mixed reality technologies that seek to combine or mirror the physical and digital worlds to allow consumers, equipped with XR equipment, to traverse between and interact with them.

Founded in 2014, Rokid has made AR equipment for a variety of consumer, travel, and industrial uses, counting companies such as the State Grid Corporation of China and home appliance giant Midea among its clients.

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