Chinese smart projector startup JMGO has raised Rmb600 million ($86.5 million) Series D funding led by Alibaba and other investors.
JMGO said that it will also develop AI technology with Alibaba, to connect its smart projector products with Alibaba’s smart speaker for voice control.
In the latest funding round, the tech giant is joined by a group of local private equity and venture capital funds including Junsan Capital, Sunz Fund, Stone Capital, GF Xinde Investment, Beijing DZ Capital and 36Ker Fund.
Founded in 2011, JMGO has attracted multiple investors in its previous fundraising. It received undisclosed amounts of angel investment in 2013, $8.6 million Series A in 2014, $28.8 million Series B investment in 2015 and $86.5 million Series C funding in 2016.
Although the product appears quite new to consumers, JMGO is ambitious about its expansion. Chief executive Hu Zhenyu has said that annual sales this year may exceed Rmb1.5 billion: almost three times the figure from last year.
Smart projectors have emerged just as televisions are becoming larger and more expensive. Instead of a fixed screen, they work, as the name suggests, like a projector that displays graphics on a wall.
As such, these units take up less space and sell at a cheaper price than traditional televisions with the same display size.
More players have started to focus on this sector since 2016. There are startups like JMGO and tech companies such as Xiaomi and Baofeng, as well as traditional TV manufacturers like Hisense and Changhong.
For JMGO, the biggest competitor in the market is XGimi, another smart projector startup which is backed by Baidu. The Chinese search giant became the biggest investor in XGimi in March this year, aiming to develop the Internet of Things (IoT) as the next level strategy.
The market will definitely see more players in the next few years. For startups like JMGO, what will be key for future investors is whether it can turn a profit.
Another challenge for smart projector startups is the development of traditional TV panels, an industry which is strongly supported by Chinese government.
Global shipping figures for TV panels grew by 11% YoY in the first half this year to 137 million units, according to research firm TrendForce.
Chinese panel maker BOE Technology is by far the biggest manufacturer. It started operations of a large-panel production line this March which increased supply to the market.
Growth has been helped by a Rmb2 billion subsidy from the Chinese government that has brought down the price for large TV panels.
At the moment it is perhaps too early to tell whether smart projectors can fully replace traditional television.
