China Merchants China Direct Investments (CMCDI), a Hong Kong-listed investment entity managed by China Merchants Group and First Eastern Investment Group, has agreed to commit RMB90 million (US$13 million) to Anhui Iflytek Venture Capital LLP, a fund focused on investing in Internet and artificial intelligence applications in China.
The cash contribution will be made to the fund by installments, and will represent approximately 14.95% of Iflytek Venture Capital, which is seeking to raise RMB602 million (US$87 million).
Iflytek Venture Capital was established in December 2015 for a term of seven to nine years.
It is managed by Wuhu Iflytek Investment Management LLP as the general partner, and its major investors include Anhui Iflytek Industrial Investment, state-owned Anhui Provincial Development and Investment, and others.
Iflytek Venture Capital will seek to back applications of artificial intelligence in areas such as education, healthcare, tourism, motor vehicles, Internet of Things (IoT), smart hardware, information security, e-commerce, interactive entertainment, smart toys, robotics and internet advertising.
"With the technologies of Chinese enterprises related to AI attaining high rankings in multiple international competitions, AI technologies are becoming mature and will gradually become more common in the applications in different industries…There will be promising development prospects for the industry of AI in the future," the company disclosed in a filing.
Wuhu Iflytek is responsible for defining and executing the investment strategy for Iflytek Venture Capital, as well as for managing their operations.