Xiaomi is fast growing Chinese hardware company popular for its production of cheap smartphones. Today in a Facebook release Bin Lin, co-founder and president of Xiaomi, announced that the company has risen through funding $1.1 billion at a valuation of $45 billion. He named also the companies that have participated in the round: DST, All-Stars Investment, Hopu Fund, Yunfeng Capital and GIC. This late round was announced at first at Wall Street Journal a week ago. Its previous valuation was $10 billion (August 2013) and after this one the company’s valuation has gone up to $45 billion, this was announced by the director of Xiaomi, Hans Tung.
The risen capital will most probably be used for increasing of the sales on key growth markets like Mexico, India, Brazil (the smartphones will be launched there in the first half of 2015, it will be the first launch out of Asia) and Southeast Asia. For now the Xiaomi devices can be found in Hong Kong, mainland China, Malaysia, Singapore, the Philippines, Taiwan, Indonesia and India. The company’s headquarters are situated in Beijing. This round of funding shot Xiaomi far ahead than its compatriot rival Lenovo, whose assets have been evaluated on $14.4 billion.
In October the company was listed as the third in world smartphones vendor. The evaluation was made on the numbers from shipment volume according to IDC and Strategy Analytics. For 2013 they sold 19 million units of its smartphones, till the end of 2014 the expectations are that this number will be doubled.
Let’s make brief list of the fundings of Xiaomi:
- December 2010 – $41 million – before the initial launch of its first smartphone the company was developing its MIUI OS, based on Android platform;
- December 2011 – $90 million – came after the launch of the first Xiaomi phone in September of the same year;
- June 2012 – $216 million – at that point the company’s valuation was $4 billion;
- August 2013 – Series D funding with no announced value – valuation $10 billion;
- October 2014 – $1 billion bank loan – Three year loan given by 29 banks overseas;
- December 2014 – $1.1 billion;
In his Facebook statement Lin add also that this trust is based on the great performance of the company in the last four years and mark for the new phase in its development. He didn’t miss the opportunity to say that next month Xiaomi will present its new flagship device.