Deepexi, a Chinese startup providing big data and artificial intelligence (AI)-enabled enterprise digitization solutions, has secured $35 million in a Series A round of financing.
The new round was led by Chinese venture capital firm Morningside Venture Capital, Asia-focused investment company Hillhouse Capital Group, and Boston-born IDG Capital, Deepexi announced at a news briefing in Beijing on Tuesday.
BAI, a $3-billion investment platform wholly-owned by media, education and services mogul Bertelsmann, Chinese mobile internet-focused Chuxin Capital, Suning Ecological Chain Fund, and boutique investment bank Lighthouse Capital, also participated in the investment.
Deepexi, founded in 2018, specialises in the application of big data and AI in providing supply chain, manufacturing, and marketing services.
The company serves customers in the automotive, high-tech manufacturing, healthcare, new retail, as well as computer, communication, and consumer electronics fields.
The Beijing-based company has launched branches in Shanghai, Guangzhou, Shenzhen, Nanjing, and Chengdu. It currently has over 500 employees with 85 per cent of those working on research and development.
“The Chinese technology market is embracing an era when three waves – information, cloud computing, and intelligent operation – are sweeping across the nation and leading the industry development in the following ten to 20 years,” said Liu Kai, executive director of Morningside Venture Capital, at the news briefing.
“Most enterprises in China, however, do not have technological and operation capabilities to promote the application of these three trends,” said Liu. “So we believe the major investment opportunities in future technology lies in helping Chinese enterprises cross the digitization chasm created by these trends.”
Proceeds will be used for the construction of an intelligent platform to help enterprises go digital. Deepexi also plans to increase investment in the research and development of products and technologies, talent recruitment and market expansion.
Deepexi raised RMB85 million ($11.95 million) in a Series pre-A round led by Hillhouse Capital Group in March 2019. In July 2018, the startup closed RMB15 million ($2.10 million) in an angel round from IDG Capital and Chuxin Capital.