SenseTime, the China-based imaging technology provider backed by corporates Alibaba, Qualcomm, Suning and Dalian Wanda, is considering raising up to $1bn in new funding, Nikkei reported today.
The company would seek to raise $500m to $1bn while dropping mooted plans to launch an initial public offering that would have been sized at about $750m, according to people briefed on the plans who said the decision was related to expected challenges linked to the coronavirus.
Founded in 2014, SenseTime produces artificial intelligence software used to identify people, objects and vehicles. It has also expanded into other fields utilising AI, such as autonomous driving, augmented reality and smart health technology.
The company had initially pursued an initial public offering in the US but was one of eight Chinese companies blacklisted by the US in October 2019 (as was chief competitor Megvii). It has since received the go ahead from regulators to float on the Hong Kong Stock Exchange.
SenseTime had secured more than $1.6bn in funding as of a $620m series C-plus round in May 2018 that valued it at $4.5bn pre-money.
Mobile chipmaker Qualcomm’s investment arm, Qualcomm Ventures, was among the series C participants, as were investment and financial services group Fidelity International, Hopu Capital, Silver Lake, Tiger Global Management.
E-commerce firm Alibaba led the company’s $600m series C round the month before, investigating together with retail group Suning and Temasek. It completed a $410m series B round featuring real estate-focused conglomerate Dalian Wanda at a valuation of more than $1.5bn the previous year.
CDH Investments, IDG Capital, StarVC, Sailing Capital, China International Capital, Co-Stone Capital, China Merchants Securities International, Morningside Venture Capital, Everbright-IDG Industrial Fund, Advantech Capital, Zhongping Guoyu Asset Management, Huarong International Financial Holdings, TCL Capital and Infore Group also backed the round.
Reports in September 2018 suggested the company had raised $1bn from telecommunications and internet group SoftBank’s Vision Fund, but neither company appears to have confirmed them.
