Li Yong, the founder of Yueran Innovation, holds the conviction that the AI toy industry is poised to foster thriving enterprises on par with Pop Mart. Prior to establishing his own venture, Li Yong was a partner at Tmall Genie. Subsequently, he struck out on his own, venturing into the realm of educational robots. While the inaugural year witnessed revenue soaring past 100 million yuan, the business trajectory took a downward turn thereafter.

The emergence of ChatGPT in late 2022 prompted Li Yong to shift his focus towards AI plush toys. This strategic move enabled him to sidestep direct competition with online education behemoths and embrace a zero-inventory business model. His inaugural offering, BubblePal, emerged as an unexpected hit, with 250,000 units sold to date, racking up sales in excess of 100 million yuan.

In August of this year, the company successfully secured a Series A funding round of 200 million yuan and unveiled the second-generation CocoMate series. Li Yong is of the opinion that AI toys do not represent the pinnacle of innovation. His team is currently in the process of developing a product line tailored for the adult market, which is anticipated to make its debut within the current year. He underscores the significance of emotional value as the cornerstone of toys and is confident that his company can emulate the triumph of Pop Mart.