Xiaoice Revenue, Valuation, Funding & Investors

Xiaoice is valued at $2B as of November 2022. Xiaoice revenue was $15M, as disclosed with its July 2021 round.

Last Xiaoice valuation

$2B

Series B · Nov 2022

Last Xiaoice funding round

$139M

Series B · Nov 2022

Xiaoice revenue

$15M

Series A · Jul 2021

Key investors in Xiaoice

  • IDG Capital
  • GGV Capital
  • Hillhouse Investment
  • 5Y Capital
  • Northern Light Venture Capital
  • NetEase

Xiaoice Overview

About Xiaoice

Xiaoice is a Beijing-based AI company developing conversational chatbots with emotional intelligence for extended dialogues. Launched by Microsoft in 2014 and spun off in 2020, Xiaoice integrates NLP, speech synthesis, and image generation serving 660 million users in China via WeChat and Douyin.


Founded

2014

HQ

ChinaBeijing

Status

Privately held

Customer focus

B2C

Revenue model

Advertising, Subscription

Revenue

$15M (Jul 2021)

Valuation

$2B (Nov 2022)

Xiaoice Valuation

Xiaoice is currently valued at $2B, based on its Series B in November 2022.

Xiaoice's valuation has grown 2.0x from $1B at its Series A in July 2021 to $2B in November 2022, across 2 priced rounds.

Xiaoice valuation by funding round

Revenue multiple
Xiaoice valuation by funding round
DateStageValuationRevenue Multiple
Nov 2022Series B$2B-
Jul 2021Series A$1B66.7x

Xiaoice Revenue

Xiaoice's latest recorded revenue is $15M, as of its Series A in July 2021. At a $1B valuation, that implies a 66.7x revenue multiple.

Xiaoice revenue by funding round

Xiaoice revenue and valuation multiple by funding round
DateRevenue *ValuationRevenue MultipleStage
Jul 2021$15M$1B66.7xSeries A

* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.

Xiaoice Funding History

Xiaoice has raised a total of $217M across 2 funding rounds.

Xiaoice's first fundraising round was a $77M Series A in July 2021. The most recent completed round was a $139M Series B in November 2022.

Xiaoice funding rounds

Xiaoice funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Nov 2022Series B-$139M$2BXiaoice is an artificial intelligence chatbot developer founded in 2014 by Microsoft researchers and spun off as a standalone Chinese company in July 2020. The company is modeled as an empathic computing framework focused on longer conversational interactions with users, positioning itself as a digital employee solution serving financial services, smart vehicle, retail, and sports sectors. Notable clients include China Unicom, the Securities and Futures Commission of Hong Kong, BMW, and Nio. In its Series B funding round closed on November 7, 2022, Xiaoice raised 1 billion yuan ($138.4 million) from investors including Sequoia Capital and existing shareholders, doubling the company's valuation to $2 billion from the $1 billion valuation achieved in its July 2021 Series A round. The company announced it would deploy the new capital to accelerate research and development of its AI technology and promote adoption of its digital employee platform.
Jul 2021Series AHillhouse Investment (lead); Northern Light Venture Capital; IDG Capital; Neumann Advisors; 5Y Capital; GGV Capital; NetEase; Wuyuan Capital$77M$1BHillhouse Capital led a Series A financing in Xiaoice, the Chinese AI chatbot business spun off from Microsoft in 2020, in July 2021. Bloomberg reported that the round raised more than 500 million yuan, about $77 million, and valued the company at about $1 billion. Neumann Advisors, IDG Capital and 5Y Capital joined as new investors, and pre-A backers Northern Light Venture Capital and NetEase Capital also took part, with GGV Capital named by Bloomberg among the participants. Xiaoice is a conversational AI platform modelled as a teenage girl, offering interactive conversation, virtual avatars and automation tools. It serves finance, retail, automotive, real estate and textile clients, including Xiaomi, Huawei, Oppo, NetEase Cloud Music and Tencent's QQ. The company has research teams in Beijing, Suzhou and Tokyo and reported 2020 revenue above RMB 100 million, and 660 million global online users by mid-2021. A third round in November 2022 raised $138.4 million and doubled its valuation to $2 billion.

Who has invested in Xiaoice?

8 investors have backed Xiaoice across its funding rounds, including IDG Capital, GGV Capital, Hillhouse Investment, 5Y Capital, Northern Light Venture Capital and NetEase.

Lead investors include Hillhouse Investment.


Xiaoice Investors

Investors in Xiaoice by funding rounds participated
InvestorHQRoundsRoleFirst check
Northern Light Venture CapitalChinaBeijing1ParticipantJul 2021
IDG CapitalHong KongHong Kong1ParticipantJul 2021
Hillhouse InvestmentChinaBeijing1LeadJul 2021
Neumann AdvisorsHong KongHong Kong1ParticipantJul 2021
5Y CapitalChinaChina1ParticipantJul 2021
GGV CapitalUnited StatesSan Francisco, CA1ParticipantJul 2021

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Xiaoice Competitors

Xiaoice competitors include listed companies like C3.ai and Haizhi, and private ones like Lin Junyang AI Lab, Turing, Liquid AI and H2O.ai.

Public and private companies comparable to Xiaoice
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Lin Junyang AI LabChinaChinaPrivate--$2B-
C3.aiUnited StatesUnited StatesPublicly listed$250M($484M)$1.9B5.3x
TuringUnited StatesSan Francisco, CAPrivate$300M-$2.2B7.3x
Liquid AIUnited StatesUnited StatesPrivate--$2.4B-
H2O.aiUnited StatesSan Francisco, CAPrivate--$1.7B-
HaizhiChinaChinaPublicly listed$93M($30M)$1.7B11.5x

Xiaoice Public Comps

Xiaoice is still privately-owned, but its public comps include Infleqtion, Affle 3i, C3.ai, SoundHound, Haizhi, Fermi, Shenzhen Intellifusion, Ncino, PCITECH and TRS Information Technology.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Infleqtion$29M($52M)53.4x35.9x(29.4x)(29.9x)
Affle 3i$285M$67M6.3x5.6x26.7x24.7x
C3.ai$250M($484M)5.0x5.3x(2.6x)(7.6x)
SoundHound$169M$19M9.9x7.4x90.0x(23.3x)
Haizhi$93M($30M)16.4x11.5x(51.3x)(51.7x)
Fermi-($490M)-344.2x(4.5x)(32.2x)
Shenzhen Intellifusion$201M($3M)10.6x10.9x(704.4x)(809.6x)
Ncino$595M$65M4.5x4.2x41.1x16.1x

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Common questions about Xiaoice

When was Xiaoice founded?Xiaoice was founded in 2014.
Where is Xiaoice headquartered?Xiaoice is headquartered in Beijing, China.
Is Xiaoice publicly listed?No, Xiaoice is a private, VC-backed company.
What is Xiaoice's valuation?Xiaoice was last valued at $2B in its Series B in November 2022.
How much funding has Xiaoice raised?Xiaoice has raised $217M across 2 funding rounds.
What was Xiaoice's last funding round?Xiaoice's last funding round was a $139M Series B in November 2022.
Who are Xiaoice's investors?Xiaoice's investors include Northern Light Venture Capital, IDG Capital, Hillhouse Investment, Neumann Advisors, 5Y Capital, GGV Capital, NetEase and Wuyuan Capital.
What is Xiaoice's revenue?Xiaoice's latest recorded revenue is $15M (July 2021).
What is Xiaoice's revenue multiple?Xiaoice's latest valuation implies a 66.7x revenue multiple ($1B valuation on $15M of revenue).
Which companies are comparable to Xiaoice?Companies comparable to Xiaoice include Lin Junyang AI Lab, C3.ai, Turing, Liquid AI, H2O.ai and Haizhi.

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