DJI car tech unit spinout ZYT is raising pre-IPO funding, report says

Deal details

ZYT (Zhuoyu Technology, 卓宇科技), a spinout from drone giant DJI (大疆), is reportedly raising a pre-IPO round of about RMB 2 billion (roughly $280 million) at a pre-money valuation of around RMB 12.5 billion (about $1.74 billion), it has been reported. EqualOcean Auto is the outlet cited for the figures, and the same report added that the company is planning a Hong Kong listing this year. The fundraising, if completed, would be a major liquidity and growth step for a unit that has been building automotive sensing and autonomy software after separating from DJI’s broader hardware business.

Context and implications

ZYT’s raise comes as China’s auto-tech sector attracts intense capital amid a global race to commercialize advanced driver-assistance systems and autonomous driving stacks. Why Hong Kong? For many Chinese tech firms, a Hong Kong IPO offers access to deep capital pools and a listing venue that can be more navigable than U.S. markets amid heightened U.S.-China tensions. DJI itself has faced U.S. export restrictions and scrutiny in recent years; that geopolitical backdrop has pushed more Chinese hardware and AI companies to diversify funding and listing strategies.

What to watch

It has been reported that the round is intended to finance product commercialization and an IPO push, but details on lead investors, timing and regulatory approvals remain unclear. Observers will watch whether ZYT can parlay DJI’s sensor and systems pedigree into a distinct, investable auto-tech business and how investors price a company rooted in a founder whose core business has been subject to geopolitical scrutiny. If the Hong Kong listing proceeds, it will be another signal of how Chinese industrial tech firms are adapting capital plans to a fractious international environment.