DeepSeek Raises $14.5B in Second Round, Valuation Hits $85B
According to The Information, DeepSeek has completed a second funding round raising approximately 105.5 billion RMB, pushing its valuation past 615.5 billion RMB. The round attracted nearly 30 investors including Tencent, CATL, and SMIC, with state-backed entities accounting for 27% of the capital. The company has also engaged CITIC Securities to prepare for a potential STAR Market IPO.
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IT Home reported on October 30 that The Information has disclosed the scale of DeepSeek’s second funding round and a partial list of investors.
As early as October 22 (local time), The Information stated that DeepSeek had completed its second funding round, raising approximately $15 billion (Note from IT Home: equivalent to about RMB 100.153 billion at current exchange rates). CATL and Tencent participated again after investing in the previous round.
According to the latest information reported on October 30, this round attracted nearly 30 investors. Tencent and CATL continued as major investors, while companies such as CXMT, SMIC, Meituan, vivo, and Xiaohongshu also appeared on the investment list, spanning sectors including chip manufacturing, consumer electronics, and internet services.
In terms of capital contribution, Tencent invested RMB 10 billion in this round, matching its first-round commitment, bringing its total cumulative investment across both rounds to RMB 20 billion. CATL and its chairman Zeng Yuqun contributed a combined RMB 10 billion in this round, an increase from their RMB 5 billion contribution in the first round.
Beyond these companies, institutions such as China Mobile, China Telecom, CICC, CITIC Securities, and China Life also participated in this round, with individual contributions ranging between RMB 2 billion and RMB 8 billion.
Among industrial investors, new participants in this round include CXMT and Zhu Yiming, as well as SMIC. Companies such as vivo, Meituan, Midea, Luxshare Precision, Geely, Trip.com, and Xiaohongshu each invested between RMB 1 billion and RMB 3 billion.
Regarding venture capital firms, Lishi Capital, founded by Cao Xi, ranked among the top contributors in terms of investment size. IDG Capital accumulated RMB 6.5 billion in investments across both rounds, while Boyu Capital invested RMB 3.5 billion in this round.
Previous reports indicated that existing shareholders such as Shixiang Capital also increased their stakes in this round. New investors included Shixi Capital, a private equity firm focused on the semiconductor industry, and Legend Capital, backed by Lenovo Group, which also participated in the investment.
Data shows that state-owned background investors accounted for approximately 27% of the total funds raised in this round, a significant increase from just 2% during the first round.
The Information noted that DeepSeek completed its first funding round of approximately RMB 51 billion in June of this year. Subsequently, the target for its second funding round was adjusted multiple times, initially set at RMB 50 billion and later raised to approximately RMB 100 billion. The recently disclosed figure of RMB 105.5 billion represents a more specific fundraising scale, and the company’s valuation has surpassed RMB 615.5 billion.
DeepSeek is also advancing plans for a potential initial public offering (IPO). Reuters reported in September that the company has hired CITIC Securities to prepare for a possible listing on the Shanghai Stock Exchange’s STAR Market, though the specific timing, valuation, and amount of funds to be raised have not yet been determined.