24 Oct 2022
October 24, 2022 - As a company specializing in the R&D and production of robot power modules, Direct Drive Tech is committed to eliminating reduction gearboxes and creating direct drive precision power solutions. Today, the company announced that it has raised a total of nearly 100 million yuan in a Series A financing jointly led by Green Pine Capital Partners (GPCP) and Lenovo Capital and Incubator Group (LCIG) and followed by a well-known industrial investor and InnoVen Capital, with existing shareholders such as 5Y Capital and MiraclePlus increasing their investment. North Beta Capital acted as sole financial advisor for Direct Drive Tech in this round of financing. The company plans to use the funds raised for technology research and development, followed by market expansion and production inputs.
“We are thrilled to have the support of top investors to help us realize our vision of providing direct drive precision power solutions that can directly replace all types of reduction gears worldwide. Thanks to a series of breakthroughs, the company has achieved monthly revenue growth of 30 percent for 12 consecutive months. Our major customers for direct drive motors include ECOVACS and Dreame, while our wheeled-leg robots serve numerous technology companies and prestigious colleges and universities, such as SenseTime, Purple River, MIT and the University of California, Berkeley. This round of funding will allow us to continue to advance the research and development of direct drive technology, while giving us the confidence to put more technologies into use that will reach and improve the lives of most people. Meanwhile, Direct Drive Tech will actively respond to Boston Dynamics’ call not to weaponize robots; as a supplier, we will also prevent our direct drive motors from being used in the manufacture of weapons,” said Zhang Di, CEO of Direct Drive Tech.
Photo 1: Main Product Series of Direct Drive Tech
“With its abundant experience and technological strengths, Direct Drive Tech will usher in a great opportunity for growth as the penetration rate of direct drive motors increases. More importantly, it has been deeply engaged in wheeled-leg robots for many years, equipped with a global first-mover advantage and mature products advantage. I believe that wheeled-leg robots, which combine the advantages of wheeled robot chassis and legged robot chassis, will significantly enhance user experience in some existing applications and may create a new market space,” observed Ms. Guo Chengcheng, Managing Director of GPCP, the co-lead investor in this round of financing.
According to Wang Guangxi, vice president of Lenovo Group and partner of LCIG, the other co-lead investor, “Lenovo sees robots as a very important link in the future intelligent Internet of Things for all industries, a terminal that has direct physical interaction with people and interfaces. There is huge market potential for robots. More application scenarios, for example, have been unlocked for robots with the accelerated implementation of traditional gear reduction and related technologies including laser positioning, millimeter wave and radar. Meanwhile, the industry is exploring more efficient ways for robots to move, such as mechatronics, or the integration of mechanical and electrical technologies. Direct Drive Tech’s direct drive precision power solutions help reduce background noise and improve space efficiency, a groundbreaking upgrade that plays a crucial role in facilitating robot applications in a variety of scenarios. Looking ahead, by leveraging its CVC 2.0 ecosystem to fully empower Direct Drive Tech, LCIG will work together with the company to fuel the long-term development of robot technology.”
Photo 2: Showcase of DIABLO
Ms. Cao Yingxue, Managing Partner of InnoVen Capital, expressed her optimism, saying: “In the long term, we have great confidence in the direct drive motors and wheeled-leg robot technology of Direct Drive Tech, which represents a group of innovative companies that have struggled to tackle technologies and processes for which we still rely on the developed world. Our intelligent living in the future is supported by power systems. And the company’s ability to make direct drive motors smaller and more durable is more than a single competitive edge. Rather, it opens up the possibility of explosive innovation in consumer products, just as the shrinking of the components of large computers gave rise to microcomputers and laptops, leading to social, cultural and technological changes. Thanks to the hard work and innovation of its team, Direct Drive Tech has advanced from the field of electrical machinery to the world of robotics, armed with both an industrial mindset and product thinking. As an investor in outstanding innovative companies, InnoVen Capital is willing to walk alongside the company and provide strong support as it gallops ahead.”
Photo 3: Performance and Advantages of DIABLO
“We are happy to have witnessed the widespread use of Direct Drive Tech’s direct drive motors in areas such as robotics and intelligent fitness equipment over the past year or so. We expect that the company’s direct drive motors, as the underlying technology for robots, will continue to push technological boundaries and enable more innovative robot products and applications,” said Chen Zhe, Managing Director of 5Y Capital, one of the shareholders in Direct Drive Tech’s Pre-A round of financing.
Mao Shengbo, partner of angel shareholder MiraclePlus, said, “Congratulations to Direct Drive Tech and to all shareholders! As one of the earliest shareholders, we are very honored to have been with the company in its infancy and to have witnessed the rapid growth of Zhang Di and his team. We are also pleased to see that the long-term goals set by the company at the MiraclePlus start-up camp are being achieved step by step. And we will continue to stay positive about and support the future growth of the company!”
Direct Drive Tech is incubated by the Hong Kong Science & Technology Parks Corporation (HKSTP).
Photo 4: Exploded View of Series M15 Motor