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.

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.