Taiwan-based Hon Hai Precision Industry Co., Ltd., the parent form of Foxconn, has invested US$20 million in Chinese image recognition start-up Megvii Technology. The investment is done via a subsidiaries, Foxteq Holdings, which bought 2.275 million Megvii shares, or a 3.286% stake.
The share purchase is part of a bigger fundraising round by Megvii that includes other unnamed investors and are in the process of completion, according to Chinese media reports.
Ant Financial, Alibaba Group’s financial services affiliate, is also a shareholder of the start-up, but it’s unclear how much Ant Financial invested.
Megvii supplies its face recognition technology to Ant Financial, allowing users to utilize face recognition when making online payments.
Founded in 2011, Megvii provides a number of services, including Face++, FaceID, Image++ and Koalacam.
The start-up previously received angel investment from Legend Star, a Chinese incubator program launched by Legend Holdings, and raised several million U.S. dollar series A round of financing from Innovation Works.
In 2014, the firm completed series B funding worth US$22 million from Qiming Venture Partners and Innovation Works. It raised US$25 million in a series B+ round led by undisclosed investors in 2015.