DeepSeek's new progress in raising billions: institutions are competing for the last entry ticket, with the earliest listing expected next year

DeepSeek Liang Wenfeng. Image generated by AI

Article by Gu Lingyu

Editor: Su Yang

On October 22, media reported that DeepSeek's new round of financing has concluded. Tencent Technology learned from several participants in this round of financing that this round is nearing completion but has not fully closed, with a few institutions still vying for the last entry opportunity.

Some institutional representatives indicated that they will still meet with Liang Wenfeng for discussions in the near future. The specific financial terms and list of investors may still change.

Tencent Technology learned that DeepSeek launched its second round of financing in mid-July, with an initial target of 50 billion yuan. In September, it sent out a term sheet (TS) to some investors, initially planning to conclude by the end of September. Subsequently, the financing target was raised again, and the current scale is approaching 100 billion yuan. After the expansion of the financing scale, the pre-investment valuation remains at about 500 billion yuan.

01 Financing Scale Doubles, Industrial Capital Accelerates Entry

According to information obtained by Tencent Technology, the proposed investment amount from new and old shareholders is expected to be roughly equal, with CATL being one of the largest investors in this round. Existing shareholders from the first round, such as IDG Capital, Lisi Capital, and Shixiang Capital, are also continuing to participate. New investors include Stone Creek Capital, SMIC Juyuan, CPE Yuanfeng, Legend Capital, Geely, as well as a telecom operator and a well-known internet company.

Among the new institutions, several have industrial backgrounds. Stone Creek Capital was initiated by a joint investment team from Zhaoyi Innovation, Legend Capital is an investment platform under Legend Holdings, and Geely is a complete vehicle manufacturing company. It is generally believed that Liang Wenfeng prefers industrial capital in the selection for the second round of financing to strengthen upstream and downstream collaboration.

In terms of funding direction, previous media reports indicated that DeepSeek is increasing its investment in AI data center construction and developing more open-source models aimed at domestic and international markets. Currently, the company has not publicly disclosed the specific uses and allocation ratios of this round of financing.

A person involved in both rounds of transactions told Tencent Technology that this round of financing is primarily led by state-owned and industrial investors. Compared to the previous round, another noteworthy change is that "capital with a Zhejiang background has increased."

A representative from a new industrial investor in this round told Tencent Technology that the progress of DeepSeek's first round of financing was too fast, and they did not have the opportunity for communication; however, by the second round, the market was already eager to participate. He stated that investment opportunities in such projects are inherently scarce. However, at the same time, although DeepSeek's financing amount is large, the transaction structure and terms are relatively conventional, and the complexity of operations is not equivalent to that of M&A projects that require splitting or restructuring. In his view, compared to earlier projects, the difficulty of judgment in investing in DeepSeek is lower, "because there is a consensus."

In April 2026, DeepSeek initiated its first round of external financing since its establishment, completing the transaction by the end of June. According to information previously obtained by Tencent Technology, the first round was approximately 51 billion yuan, with Liang Wenfeng personally contributing about 20 billion yuan.

If the second round is ultimately completed at around 100 billion yuan, the total scale of DeepSeek's two rounds of financing will reach approximately 150 billion yuan. The interval from the first round's closing to the second round nearing completion is only about four months.

02 Listing Preparation and Financing Progressing Simultaneously

Tencent Technology learned that DeepSeek has chosen CITIC Securities to assist with its listing preparation, planning to go public on the Sci-Tech Innovation Board, aiming for the fastest completion in 2027.

Several participants in DeepSeek's financing expressed optimism about the company's listing prospects, generally expecting it to complete the listing between 2027 and 2028.

Public reports also indicate that DeepSeek is advancing related preparations. Caijing previously reported that the company has been in contact with multiple investment banks since late August, planning to submit a listing application as early as the end of 2026, with a goal of listing in 2027. Other foreign media cited informed sources stating that DeepSeek is accelerating the timeline for its initial public offering, aiming for an earliest listing in Shanghai at the beginning of next year.

While expanding financing, DeepSeek's commercialization scale is also growing. Media reported in September that DeepSeek's annualized revenue run rate has reached 1 billion USD. Tencent Technology learned from informed sources that this figure is still growing rapidly.

In the second round of financing, DeepSeek also held an investor communication meeting. During this communication, Liang Wenfeng addressed questions related to due diligence and listing. For institutions participating in this round of financing, model capabilities, commercialization progress, and listing expectations collectively form the basis for investment judgment.