Manus Secures $500M After Meta Deal Collapse, Signals Expansion Beyond China
The Chinese AI startup's parent company Butterfly Effect closed its first major funding round since abandoning a $2 billion acquisition by Meta, with backing from Boyu Capital and IDG Capital alongside existing investors.
Butterfly Effect, the parent organization of Chinese AI lab Manus, announced Thursday through WeChat that it has completed a funding round exceeding $500 million. This marks the company's first major capital raise following the collapse of Meta's planned $2 billion acquisition.
Boyu Capital and IDG Capital led the round, joined by returning backers including Tencent, HSG (the rebranded Sequoia China), and ZhenFund. Manus indicated plans to expand its workforce across multiple geographies.
The startup did not reveal its current valuation, though reports from last month suggested discussions with investors centered on a $500 million raise at a $4 billion valuation.
Path to Independence
Manus gained prominence after demonstrating its AI agent capabilities last year. The company relocated personnel to Singapore in mid-2025 and subsequently agreed to Meta's acquisition that December, at which point it was generating over $100 million in annual recurring revenue.
Chinese regulators intervened in April, directing the startup to terminate the transaction as part of broader efforts to prevent AI talent and expertise from migrating westward. Following the deal's dissolution in August, Manus resumed operating independently and was required to remove certain user data as part of the separation agreement.
Reports indicate the company is exploring a potential Hong Kong public listing. Manus declined to comment to TechCrunch regarding its valuation.
Product Offerings
Manus competes in a space occupied by platforms such as Cursor, Lovable, and Replit, offering AI-powered tools for application and website development. Its platform includes a chatbot interface and vibe-coding capabilities that enable users to construct applications, design interfaces and presentations, and produce video content.
The company recently unveiled Manus 2.0, featuring a redesigned architecture with new products and capabilities centered on a new harness. Additionally, Manus introduced Cue, a standalone application that equips AI agents with dedicated email addresses, phone numbers, digital wallets, and computing resources. Cue allows agents to coordinate across multiple services, execute tasks, and process transactions within user-defined spending limits.