Xiaomi plans an expansion overseas and experienced setbacks. (Photo : Reuters )
According to a Global Times announcement on Saturday, China's Xiaomi Inc. is now a member of the multi-billion-dollar club after $1.1 billion was generated in its latest round of funding, leading to a valuation of $45 billion.
In just a three-year period, the high-technology company has climbed into the third position behind Samsung and Apple Inc. in the smartphone market, and the Global Times ranked it as "one of the world's fastest-growing smartphone makers" after the announcement.
The actual confirmation occurred on Monday, after Xiaomi CEO, Lei Jun, broadcast the achievement on his Sina Weibo account. The list of investors includes DST Global, Yunfeng Capital--the fund that Alibaba Group Holding Ltd founder Jack Ma Yun is involved with--and sovereign wealth fund GIC. The All-Stars Investment firm, a newer fund under the management of former Morgan Stanley tech analyst Richard Ji, was also among the list.
Monday's Xiaomi news is evidence of the company's current status, as investors believe that the continually fluctuating handset market may be in for yet another shakeup. The past experiences of Blackberry and Nokia have clearly shown that the smartphone technology industry is fiercely competitive. The funding boost occurs even though intellectual property issues continue to plague Xiaomi in overseas markets like India.
Xiaomi prides itself on non-traditional marketing, and uses its low-cost hardware to facilitate the increased uptake of its software and services, which represent its largest revenue sources.
Additionally, the work it has undertaken outside the smartphone niche indicates that the company is preparing to become a major player in the Internet of Things.
