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Drones
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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

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An XAG drone plants rice seeds. Photo: Handout
Coco Fengin Beijing

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.

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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.

The company plans to use the capital to “increase its advantage in research, development and manufacturing”, XAG founder Peng Bin said in a statement. The company will also “develop more smart agri-equipment” and “comprehensively build an XAG unmanned farm”, he said.

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.

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