The Surge of Embodied Intelligence: IPO Hopes and Market Expectations

One of the most important indicators of economic market prosperity is the flow of capital. When money flows like water through all the details of an industry's upstream, midstream, and downstream, it indicates that the industry is developing in a healthy and positive direction. The capital market is constantly refreshing itself, and recently, it has become lively again. This time, the star industry chain under the spotlight is embodied intelligence. The sector has seen impressive long-term gains, and data shows that in 2024, there were 182 financing rounds in the embodied intelligence sector, amounting to 14.05 billion yuan. Focusing on the humanoid robot sub-sector, a report from KPMG states that the global humanoid robot market size will reach 2.03 billion USD in 2024, expected to grow to 13.25 billion USD by 2029, with a compound annual growth rate of about 45.5%. Meanwhile, financing in the humanoid robot space has seen reverse growth, with financing scale increasing from 1.58 billion yuan in 2020 to 7.23 billion yuan in 2024, a compound annual growth rate of 35.6%. Until the first half of this year, the industry's focus was primarily on the financing progress of companies in the embodied intelligence sector. According to industry insights, many domestic companies in this field are still stuck in Series A funding rounds, with a notable number also in angel rounds or earlier stages. The long financing cycles are attributed to three main reasons: Firstly, the technical challenges in embodied intelligence are significant, leading to lengthy product development cycles and high capital requirements, making it difficult for a single round of funding to support a major technological breakthrough. Secondly, investors are being more cautious and are reducing the amount of single investments, only substantial projects can secure large financing. Thirdly, mismatches between valuation and future development expectations lead companies to repeatedly raise funds at the same valuation during the same funding round. As we move into late 2025, industry attention has shifted towards the IPO potential of related companies. This change largely reflects the capital and market's expectations for the rapid development of the embodied intelligence industry. As the industry matures and capital accumulates, market pressure for IPOs builds, similar to the societal pressure on adults nearing 30 to settle down. Among these, Yushu Technology is in the spotlight. On July 4th, the IPO discussions surrounding Yushu Technology gained traction again, with investors reporting that the company plans to list on the Sci-Tech Innovation Board. The buzz around Yushu’s upcoming IPO is backed by significant financial backing. In February 2024, Yushu Technology completed a multi-billion yuan B++ funding round with investors including Shenzhen Capital Group, China Growth Capital, and Meituan. By September of the same year, they raised over 1 billion yuan in a C round, with notable backers like CITIC Securities and Shanghai Sci-Tech Innovation Fund. This year, Yushu’s valuation has skyrocketed, and on June 19, it confirmed the completion of its C round financing, which raised about 700 million yuan, bringing its post-financing valuation to 12 billion yuan. As more companies look to go public, the questions remain: do they have the revenue and cash flow to support a large IPO? What urgency drives the industry? While many embodied intelligence companies are lining up for IPOs, significant challenges remain. For instance, in June, Woan Robotics submitted an IPO application to the Hong Kong Stock Exchange, aiming to raise funds to enhance R&D capabilities and expand market presence. Similarly, Stand Robotics also filed for an IPO, despite facing operational losses. The path for embodied intelligence companies to list is fraught with uncertainties and challenges, especially regarding profitability and sustainable growth amid fierce market competition. As the industry evolves, those that adapt and innovate will likely emerge stronger in this rapidly changing landscape.