Author: Huatai Shi

Recently, Hangzhou, Zhejiang Province, has emerged as a hotbed for future unicorns, with Zhejiang Kecong, a leading mobile robot control system enterprise, securing tens of millions of yuan in A2 round funding. This exclusive investment was provided by West Lake Venture Capital, an investor specifically established by the People's Government of Xihu District, Hangzhou City. The funds will primarily be allocated to ongoing product technology innovation and the establishment of the X-Robot Xihu R&D and Testing Center.

-01-

Zhejiang Kecong is a high-tech enterprise specializing in the research, development, and industrialization of mobile robot control systems. In simple terms, the company equips mobile robots with precise positioning, dynamic path planning, and autonomous decision-making capabilities in complex environments through its proprietary control systems and navigation technology. Its products are widely utilized across various industries, including warehousing and logistics, automotive manufacturing, 3C electronics, energy, and chemicals.

This funding round marks the third infusion of capital for Zhejiang Kecong within a year, following the successful completion of the A round in early 2024 and the A+ round in mid-year. The company has previously garnered recognition from institutions such as Dajin Capital, Zhenshi Capital, Qida Investment, Yuanjing Capital, and Jinma Investment. Founded in 2015 by a team of senior technical experts including Chen Jian and Wang Wenwei, Kecong's founder, Chen Jian, boasts over 20 years of experience in automation control and robot navigation, having participated in numerous national-level intelligent manufacturing projects. Initially, the team identified a significant reliance on imported mobile robot control systems in China, leading to high costs and limited adaptability. Consequently, Kecong aimed to develop cost-effective and highly flexible domestic control systems through independent research and development, thereby fostering the advancement of intelligent manufacturing in the country.

-02-

The mobile robot industry emerged at the turn of the 21st century and has since entered a period of rapid growth, fueled by the rise of intelligent manufacturing and logistics automation.

From the 1970s to the 1990s, advancements in computer technology, microprocessors, and control systems diversified AGV (Automated Guided Vehicle) navigation technology, introducing various semi-fixed path guidance methods such as magnetic and light strip guidance. The 1990s to 2010s saw further developments in navigation technology, with the emergence of free path guidance methods like laser, GPS, and natural navigation, significantly enhancing robots' environmental adaptability. Mobile robots gradually became more prevalent in logistics, warehousing, healthcare, and other fields, leading to a surge in market demand. In 2012, following Amazon's acquisition of Kiva Systems, the concept of Autonomous Mobile Robots (AMRs) gained traction, steering mobile robots towards more autonomous and intelligent development. The integration of deep learning technology has endowed robots with enhanced perception and decision-making abilities. Since 2022, large models' reasoning and decision-making capabilities have significantly bolstered mobile robots' autonomous navigation, path planning, and task execution. For instance, deep learning-based semantic SLAM technology aids robots in better understanding their surroundings. In 2023, the domestic robot market surpassed 50 billion yuan, with an average annual growth rate exceeding 30%. With the continued proliferation of intelligent manufacturing and logistics automation, the market is poised for sustained rapid growth in the coming years.

-03-

Currently, the Chinese mobile robot market lacks absolute leading enterprises, but several companies have established a presence in control systems, navigation technology, and complete machine solutions. Firms like SIASUN Robot, Geek+, Hikvision Robotics, Quicktron, Huaxiao Precision, Blue Ocean Robotics, and HAI Robotics are gradually increasing their market share across various verticals.

Zhejiang Kecong operates within the industry's control system segment. Distinguishing itself from competitors, Kecong boasts full-stack self-developed technology and highly flexible products that can swiftly adapt to the needs of diverse industries. The rapid advancement of AI and 5G communication technology presents new opportunities for the mobile robot industry. For example, AI can optimize path planning and decision-making algorithms, while 5G enables remote control and real-time data transmission for robots. In path planning, AI can refine mobile robot path planning through machine learning and big data analysis. Utilizing deep learning algorithms, robots can analyze environmental data in real-time, dynamically adjust paths, avoid obstacles, and enhance navigation efficiency. As technology continues to evolve, mobile robots will find applications in more domains, including smart factories, smart logistics, and smart healthcare.

This article does not constitute investment advice. The image is sourced from AI illustration.