Mengxiang Zhanfang, the VR subsidiary under the Chinese online streaming platform iQiyi, is said to have ceased operations.
Multiple internal sources from the subsidiary revealed that the company's business has stalled, and over a hundred employees have not been paid. Some employees said that it was primarily due to the incomplete receipt of the 400 million yuan (US$55.78 million) Series C funding announced by the company in January this year.
According to insiders, this funding was intended to be released in stages and included performance-based conditions. However, iQiyi failed to meet the set sales targets, resulting in the inability to secure the full funding, receiving only tens of millions instead.
Neither iQiyi nor its VR unit has responded to this matter.
