Xiaomi, the Apple of China and the world’s third-biggest smartphone maker in Q3 2014 as per the IDC, has recently raised $1 billion at a $45 billion valuation, as reported by the Wall Street Journal. The investors include Singapore sovereign wealth fund GIC that values the smartphone giant at over $45 billion. If the rising smartphone maker really has been valued at $45 billion, that indicates a big rise from its prior valuation of $10 billion in August 2013. Its y-o-y change is a whopping 211.3%, highest amongst the competitors.
Xiaomi has of late focused on expansion in emerging markets viz. Southeast Asia, Brazil, Mexico, and India. India is by now dubbed as its key growth markets, with Xiaomi selling over 100,000 units per week on a leading online retailer, Flipkart. Xiaomi stated that it sold over 19 million phones in 2013, and in 2014, it anticipates to double that by selling at least 40 million units. It recently announced a $200 million investment in appliance maker Midea.
To boost sales of its smart TV devices, it invested $1 billion in online video content. The WSJ’s report of Xiaomi’s fundraising and valuation in November stated that it had made net profit of $566 million last year. Xiaomi’s business model has been a hot topic of speculation as it manages to sell quality smartphones at extremely low prices. The participants in its new funding included All-Stars Investment, the Russian firm DST Global, and the Singapore sovereign-wealth fund GIC.
Xiaomi Inc. is a privately owned Chinese electronics company headquartered in Beijing, China. It designs smartphones and is a distributor that also develops, and sells smartphones, mobile apps, and consumer electronics.