Quick Take
- Manus AI startup’s early Chinese backers plan to buy it back from Meta for $2 Bn (Rs 16,600 Cr).
- HSG, ZhenFund and Tencent join the buyback, while early investor Benchmark stays out.
- The move follows Beijing’s April order to unwind Meta’s December 2025 deal, per The Information.
In This Article
The Manus Meta buyback plan is underway, with early Chinese backers of AI startup Manus preparing to repurchase the firm from Meta at the same $2 Bn (Rs 16,600 Cr) price the social media giant paid, The Information reported on June 18, 2026.
The reported move follows Beijing’s order, issued in April, to unwind Meta’s December 2025 purchase. China’s National Development and Reform Commission directed both sides to reverse the deal on national security grounds (NDRC order, April 27, 2026). Early investors HSG, ZhenFund and Tencent are joining the effort, according to The Information. You can view the product itself at the official Manus website.
StartupFeed Insight
The hidden story sits in the numbers. Manus reportedly grew its annualized revenue run rate to $400-500 Mn (Rs 3,320-4,150 Cr), up from $100 Mn (Rs 830 Cr) when Meta bought in (The Information). So the original backers may reclaim a far bigger business at the old price. Every India-China-US dealmaker should watch this case closely, because it sets a template for forced reversals. StartupFeed expects more Asian AI founders to favour domestic capital and Hong Kong listings over US buyers through 2026 and 2027, as origin-based security reviews harden. By StartupFeed Desk.
Manus Meta Buyback: Deal Breakdown
The Manus Meta buyback proposes returning the AI startup to its founders and early backers at the original purchase price. The Information reported the plan on June 18, 2026, citing two people with direct knowledge. Here are the core terms reported so far.
| Metric | Detail | Notes |
|---|---|---|
| Buyback Price | $2 Bn (Rs 16,600 Cr) | Same price Meta paid (The Information) |
| Participating Investors | HSG, ZhenFund, Tencent | HSG and ZhenFund may add fresh capital |
| Not Participating | Benchmark | US backer already received proceeds (WSJ) |
| Original Deal Date | December 2025 | Closed in about ten days |
| Reversal Order | April 27, 2026 | Issued by China’s NDRC |
| Revenue Run Rate | $400-500 Mn (Rs 3,320-4,150 Cr) | Up from $100 Mn (Rs 830 Cr) in December |
The most striking fact is the revenue jump. Manus roughly quadrupled or quintupled its annualized run rate in months, which makes the forced reversal a potential win for the original backers (The Information).
About Manus
Manus is an autonomous AI agent built by Butterfly Effect, founded in 2022 by Xiao Hong, with Ji Yichao (known as “Peak”) as co-founder and chief scientist. The company moved its headquarters from Beijing to Singapore in mid-2025. Manus sells subscriptions to AI agent tools that run tasks with minimal human input. Early backers include HSG, ZhenFund, Tencent and Benchmark.
Why Are Chinese Backers Buying Manus Back?
The Manus Meta buyback is driven by a Chinese government order, not a market choice. China’s NDRC directed Meta and Manus to unwind the deal on national security grounds, flagging potential breaches of technology export and foreign investment rules (NDRC order, April 27, 2026). The regulator looked past the Singapore structure to the technology’s Chinese origin.
“Reuters could not independently verify the report,” the wire service noted, adding that Meta, Manus and the investment firms did not immediately respond to requests for comment.
HSG and ZhenFund are weighing fresh capital to acquire Meta’s stake, The Information reported. Since the April order, Meta has split operations and stopped data sharing with Manus (Bloomberg). The co-founders have also held early talks to raise about $1 Bn (Rs 8,300 Cr) from outside investors.
What Does This Mean for Cross-Border AI Deals?
The Manus Meta buyback marks a rare unwinding of a completed cross-border technology deal. Legal analysts call it the first publicly confirmed use of China’s foreign investment security review to reverse a closed AI transaction (Morgan Lewis). The decision sets origin over domicile as the test, meaning where the technology and team were built matters more than the registered entity.
For founders and investors, the risk is now structural. A Singapore address did not shield Manus, so any startup with deep China roots may face similar scrutiny on a US sale. Manus is also weighing a switch to a China-incorporated joint venture, opening a path to a Hong Kong stock market listing, per The Information.
How Does Manus Compare With AI Agent Rivals?
Manus competes in the fast-growing AI agent sector, where systems run multi-step tasks on their own. The table below shows how it sits against other Chinese AI names eyeing Hong Kong capital markets.
| Company | Focus | Capital Path |
|---|---|---|
| Manus | General AI agent | Possible Hong Kong listing |
| MiniMax | Foundation models | Hong Kong listing pursued |
| Zhipu | Foundation models | Hong Kong listing pursued |
What sets Manus apart is its agent-first pitch, branded as a “general” AI agent that delivers finished task outcomes rather than just answers.
What’s Next
The next milestone is funding. The co-founders aim to raise about $1 Bn (Rs 8,300 Cr) from outside investors to fund the Manus Meta buyback, alongside the participating backers. A China-incorporated joint venture could follow, setting up a potential Hong Kong listing in the months ahead. Will Beijing’s origin-based approach reshape how Asian AI founders chase global capital?
Frequently Asked Questions
Last updated: June 19, 2026 at 09:15 IST
Written by Avinash. Published: June 19, 2026. Updated: June 19, 2026. Have a tip? Write to us at editorial@startupfeed.in.
