Aug 27, 2019 (China Knowledge) - Beijing-based startup Megvii Technology has applied for an initial public offering (IPO) with the Hong Kong Stock Exchange (HKEx). The company is looking to raise at least USD 500 mln from the IPO, with some analysts predicting the funding to reach over USD 1 bln.
Megvii has consolidated its position as one of the China’s biggest players in facial recognition technologies, particularly with its facial recognition platform Face++. Megvii is expected to be the first Chinese artificial intelligence (AI) company to go public in Hong Kong.
According to the IPO prospectus submitted, the company will use the raised funds to enhance its research and development capabilities, recruit top AI talent, build a data center and pursue strategic investments opportunities.
Currently, Megvii occupies around 60% of the total Chinese market share within the cloud computing and AI technology industry. Over 70% of Android smartphones manufactured in China utilizes the company’s facial recognition technology.
The company’s revenue grew from RMB 67.8 mln (USD 10 mln) in 2016 to around RMB 1.4 bln (USD 200 mln) last year. However, Megvii has yet to record a profit, with the company losing RMB 1.4 bln last year and RMB 3.4 mln in 2016.
Megvii previously raised UDS 750 mln from investors in a round of funding in May 2019.
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