Manus Parent Raises Over $500 Million After Collapse of Meta Acquisition

TL;DR

• Manus parent Butterfly Effect announced more than $500 million in new funding.

• Boyu Capital and IDG Capital led the round, with participation from existing investors including Tencent and HSG.

• The company did not disclose its valuation, despite earlier reports of a targeted $4 billion valuation.

• The financing follows Chinese authorities’ order to unwind Meta’s $2 billion acquisition of Manus.

Butterfly Effect, the parent company of Chinese AI startup Manus, has raised more than $500 million in its first funding round since Meta’s planned $2 billion acquisition was unwound.

The company announced the financing in a WeChat post on Thursday, saying it would continue hiring domestically and internationally as it builds its business independently.

Boyu Capital and IDG Capital Lead Funding Round

Boyu Capital and IDG Capital led the investment, while existing shareholders Tencent, HSG, formerly Sequoia China, ZhenFund and others also participated.

Butterfly Effect did not disclose the valuation attached to the round.

Reports last month indicated that Manus was seeking to raise $500 million at a $4 billion valuation. However, the announcement did not confirm whether the completed financing used that valuation.

The investment gives the company fresh capital following months of uncertainty surrounding its ownership and operations.

Meta Deal Unwound Following Chinese Intervention

Manus gained widespread attention after demonstrating its AI agent last year. The startup relocated its staff to Singapore in mid-2025 and announced a $2 billion acquisition agreement with Meta that December.

At the time of the deal, Manus reportedly had more than $100 million in annual recurring revenue.

Chinese authorities ordered the acquisition to be unwound in April following a months-long investigation. The intervention came amid growing concerns in China about AI talent and research moving to the West.

The decision ended Manus’ planned integration into Meta and set the stage for its return to independent operations.

Manus Resumes Independent Operations

Manus announced in August that it had resumed operating independently following the termination of the Meta deal.

The company also said it was required to delete some user data as part of the separation.

Thursday’s funding announcement marks a further step in that transition, with both new investors and existing shareholders backing the business. Butterfly Effect said hiring would continue at home and abroad, although it did not provide a detailed allocation of the proceeds.

Hong Kong Listing Reportedly Under Consideration

Manus is also reportedly considering a public listing in Hong Kong.

No timetable or confirmed listing plan was disclosed in the funding announcement.

For now, the company’s immediate focus is expanding as an independent AI business, supported by more than $500 million in new financing after the collapse of its proposed sale to Meta.