XPeng robotics unit Dogotix secures US$900 million in funding

XPeng has entered a share-purchase agreement for its robotics unit, Dogotix, to receive approximately US$900 million in a funding round. The transaction, which excludes warrants, values the business at more than US$6.3 billion following a pre-money valuation of $5 billion.

IDG Capital led the round, with participation from Gaorong Ventures and strategic investment from Tencent and Alibaba. The US$900 million total includes US$600 million from external investors for Series A preferred shares, US$200 million from an XPeng subsidiary, and US$100 million from executive subscribers for ordinary shares.

The proceeds are intended to support the robotics business’s growth, capital expenditure, and working capital, including the development of Physical AI models and mass-production facilities. XPeng will retain control and continue to consolidate Dogotix, characterizing the deal as a carve-out financing rather than an exit.