EncoSmart (享刻智能), a Chinese provider of embodied AI solutions for culinary, has completed a tens of millions of yuan (approximately $1.4 million to $14 million USD) Pre-A series funding round. The investment was led by Century Galaxy and TusStar, with participation from NetDragon Tianying Venture Capital, Guanghua Capital, Beijing Dongsheng Technology Park, and Dongsheng Jimen Asset Management.

Founded in 2022, the company develops LAVA, an embodied AI robot chef. LAVA is designed to autonomously cook, capable of identifying ingredients, controlling cooking times, and managing food flavors and textures. The robot can also master new menus through continuous self-learning and assess and report safety risks within its working environment.

In a significant development for the application of AI in the food sector, EncoSmart has also obtained Beijing’s first food business license specifically for an embodied AI robot from the Haidian District Market Supervision Bureau. This license is expected to accelerate the deployment of such advanced technology in the catering market.

EncoSmart aims to leverage embodied AI to help reduce costs, improve efficiency, standardize food processing workflows, and cater to consumers’ precise demands for dish flavors. The recently secured funds will support the company’s ongoing research and development efforts and help expand its presence in the evolving embodied AI market.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ China’s AI funding ecosystem demonstrates sustained momentum

Xiangke Intelligent’s funding success reflects China’s broader AI investment landscape that has evolved significantly since 2017, when the country first surpassed the US by capturing 48% of global AI startup funding compared to America’s 38% 1.

This trend has continued with China’s overall AI industry projected to reach 1.73 trillion yuan ($237.4 billion) by 2035, supported by both private and government funding 2.

The pattern of multi-party investment seen in Xiangke’s round—involving corporate investors, university-affiliated funds, and technology parks—mirrors the diverse funding ecosystem that has become characteristic of China’s AI sector.

Recent data shows 42 corporate-backed funding rounds in February 2025 alone, marking a 27% increase from January, demonstrating the accelerating interest from established Chinese companies in AI startups 3.

A survey indicates 87% of Chinese companies plan to increase AI investments in 2025, focusing on infrastructure, data management, and talent—critical areas for startups like Xiangke Intelligent to develop competitive advantages 2.

2️⃣ Government policies create strategic tailwinds for AI startups

Xiangke Intelligent’s focus on healthcare and finance aligns with China’s national strategy that identified AI as a priority sector, with the government committing tens of billions of dollars to develop breakthrough capabilities by 2025 4.

The startup’s location and funding sources highlight how China has implemented regional innovation policies, including subsidies for innovation centers (up to $4.1 million in Shanghai) and the creation of specialized technology parks like Dongsheng, one of Xiangke’s investors 5.

Chinese AI startups benefit from a regulatory environment that favors data access and application deployment, particularly in sectors deemed strategic, contributing to the formation of nearly 1,500 AI companies nationwide 1.