download (16).jpg (Photo : Reuters)
Xiaomi Technology Co. Ltd., the world's third largest smartphone company, has joined other investors in helping Misfit Wearables raise an additional $40 million in a Series C funding round, according to Tech Crunch.
The deal with Misfit marks the first time that Xiaomi has invested in a U.S. company even as it continues to push through with its international expansion program.
The Chinese maker of smartphones, televisions and routers has said early this year that it plans to penetrate new markets in India, Brazil, Malaysia, Indonesia, Thailand, Vietnam, Turkey, Mexico and the Philippines, in addition to its existing sales outlets in the mainland along with those in Hong Kong, Taiwan and Singapore.
A Xiaomi spokesman reportedly confirmed to the Global Times the company's new investment in Misfit Wearables although no details were disclosed.
Unlike other electronics companies in the world, Xiaomi has no manufacturing capacity of its own, no brick-and-mortar retail outlet and does not pay for traditional advertising. It relies on Foxconn and Inventec to produce its products, which it sells through its own online store. It also uses social networking services as well as its own customers to help promote the Xiaomi brand. It moreover sells its products almost at just the cost of materials. The unique business model has proven successful to the company, making it the top smartphone maker in China.
Xiaomi, last year, hired former Google executive Hugo Barra to help lead its global expansion. It also changed its company website address, dropping the "xiao" to mi.com to reflect its new international profile. Barra said that Xiaomi's business model will also be adapted to reach the overseas target markets.
Aside from Xiaomi, the other Chinese investors that helped raise $40 million for Misfit Wearables include JD.com Inc., an e-commerce company, as well as CCV Capital and Shunwei, both venture-capital firms.
Misfit's existing investors, including Horizons Ventures, Khosla Ventures, Founders Fund and Northwest Venture Partners, also contributed to the $40 million.
Misfit Wearables designs and manufactures wearable products that use sensor technology. Its first and best known product is Shine, an activity tracker and sleep monitor that can be worn in a variety of ways.
