New billion-dollar funding gives Xiaomi $45BN valuation
DetailsRebecca Hawkes | 23 December 2014
Chinese smartphone manufacturer Xiaomi has raised over US$1 billion during its latest round of funding, which values the company at $45 billion, according to the Wall Street Journal.
The latest financing, run by Richard Ji, who was a technology analyst at Morgan Stanley until 2013, reportedly included investment from DST Global and Singapore sovereign-wealth fund GIC Pte Ltd.
Local investors include Yunfeng Capital, a private fund affiliated with chairman of Alibaba Jack Ma, and Chinese deal maker Fang Fenglei's Hopu Investment Management Company, says the WSJ.
Xiaomi has recently been making significant investments in China's online video sector, with a $300 million injection in iQiyi.com , the video streaming division of search engine giant Baidu, and taking an unspecified stake in streaming company Youku Tudou.
The four-year old company's mid-tier priced phones are sold at a fine profit margin in order to create a captive market for its mobile commerce services. The business model has propelled it to become the third highest vendor of smartphones globally, after Samsung and Apple.
Most Xiaomi sales emanate in China, however the company has its sights firmly set on international expansion. Its entry into the Indian market has stumbled, following a patent complaint filed by Ericsson.