Oct 8 (Reuters) – Butterfly Effect, the parent company of AI startup Manus, said on Thursday it had completed a more than $500 million funding round as the firm resumed independent operations after unwinding Meta’s $2 billion-plus acquisition.
The round was co-led by Boyu Capital and IDG Capital, with existing investors Tencent, HSG, and ZhenFund also participating.
• Manus develops general-purpose AI agents that can autonomously carry out tasks such as research and automation with minimal human input
• In April, Beijing ordered Meta to unwind its acquisition of Manus amid tightening scrutiny of US investment in Chinese startups developing advanced AI technologies
• Manus said in August it would resume operating as an independent company and delete some user data as part of its separation from Meta
• The Information reported in June that Manus’ annualised revenue run rate had surged to about $500 million, up from $100 million when Meta acquired it, and that the firm was considering a joint-venture structure incorporated in China, paving the way for a Hong Kong listing
• However, Manus won’t begin the process for a Hong Kong initial public offering until at least 2027, according to a source familiar with the matter, who declined to be named as they are not authorized to speak to the media
(Reporting by Rajveer Singh Pardesi in Bengaluru and Kane Wu in Hong Kong; Editing by Eduardo Baptista and Jan Harvey)
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