Chinese AI startup Manus, owned by Butterfly Effect, secured over $500 million in its latest funding round. This marks the company's first capital raise since the collapse of its $2 billion acquisition deal with Meta. The round was led by Boyu Capital and IDG Capital, with participation from existing investors including Tencent, HSG, and ZhenFund.
The startup, which previously relocated staff to Singapore in mid-2025, resumed independent operations in August. Reports suggest the company is now considering a potential public offering in Hong Kong. While the exact valuation remains undisclosed, recent discussions indicated a target valuation of $4 billion.
Manus specializes in AI agents and development tools, recently launching Manus 2.0. The company also introduced Cue, an application that provides AI agents with dedicated digital identities, including email addresses, phone numbers, and digital wallets, allowing them to perform tasks and manage payments autonomously.
The split from Meta was mandated by Chinese authorities in April due to concerns regarding the migration of AI talent to the West. As part of the separation process, the startup was required to delete certain user data. Despite these challenges, the firm continues to actively recruit personnel both domestically and internationally.
