SoftBank-backed AI startup SenseTime files for Hong Kong IPO

SenseTime, an artificial intelligence software company based in China, has filed a preliminary application to list on the Hong Kong Stock Exchange (HKEx). The company hasn’t stated how much money that it plans to raise, but a Reuters report pegged it at US$2 billion.

Founded in 2014, SenseTime has developed AI technology for facial recognition, autonomous driving, smart city, and clinical practice, among other applications. In the first half of this year, the company’s revenue increased 2x, while its gross profit margin was slightly up by 73% from 72.1% during the same period in 2020.

SenseTime has more than 2,400 customers, and its technology is also used on more than 450 million smartphones and 200 apps. Out of those apps, five have more than 500 million monthly active users.

The company plans to use most of the new funds to improve its research and development capabilities. The rest will be allocated for operations, business expansion, and strategic investment and acquisition.

In 2019, it was among the eight Chinese tech companies that were put on the US trade blacklist. In its HKEx filing, SenseTime said: “If our subsidiary remains on the Entity List on a prolonged basis, we may not be able to compete effectively in certain business lines, and our business, results of operations and financial condition could be materially and adversely affected.”

SenseTime has raised more than US$3 billion to date and counts prominent companies such as SoftBank, Alibaba Group, Temasek, Singtel Innov8, and IDG Capital as investors.