Dreame Technology Opens Pre-IPO Funding Round at $9.6B Valuation

Dreame Technology, the Chinese smart cleaning appliance maker, has opened a direct Pre-IPO funding round with a pre-money valuation of approximately 70 billion yuan ($9.6 billion), according to sources familiar with the matter. The fundraising window, expected to close by early July, requires a minimum investment of 350 million yuan per investor. The company plans to release 5% to 10% of its equity, translating to a fundraising target of 35 to 70 billion yuan. The round includes both secondary share sales from founder Yu Hao and new primary share issuance, with the final ratio subject to lead investor negotiations. Despite the high barriers, demand has been overwhelming. Sources indicate that dozens of institutions have submitted bids, including Middle Eastern sovereign wealth funds and large listed companies. Secondary market premiums have already emerged, suggesting strong investor confidence in Dreame's eventual IPO pricing and first-day performance. Founded in 2017 with 14 million yuan in angel funding from Xiaomi and Shunwei Capital, Dreame quickly became a standout in Xiaomi's ecosystem. The company raised 3.6 billion yuan in its Series C round in October 2021, then a record for the smart cleaning industry, followed by a Series C+ in May 2023. Dreame now operates in over 120 countries, with overseas revenue accounting for nearly 80% of total sales. The company posted over 40 billion yuan in 2025 revenue, maintaining a compound annual growth rate exceeding 100% for eight consecutive years. It shipped 3.4 million units in 2025, capturing 10.5% market share with 101.9% year-over-year growth, according to IDC data. The company has expanded beyond cleaning appliances into large home appliances, smartphones, humanoid robots, and even automotive segments, with founder Yu Hao articulating a "trillion-yuan revenue" vision. Dreame maintains R&D spending at 7-10% of revenue — significantly higher than the 3% industry average for traditional home appliance makers. A detailed timeline has been set: BP and teaser updates completed May 28; investor意向 confirmation deadline May 31; roadshow June 3-8; term sheet collection by June 10; SPA negotiation by June 25; and deal closing by June 30. The company faces intense competition, particularly from Roborock (17.7% market share, 5.8 million units shipped in 2025) and Ecovacs (14.3%, 4.7 million units). Traditional home appliance giants are also accelerating their entry into the smart cleaning space.