Xiaomi Inc of China is one of the fastest-growing makers of smartphone in the world. The company raised $1.1 billion or 706 million pounds in its "round of funding" that strengthen its status being one of the most valuable companies on private technology in the world with $45 billion value.
Lei Jun, Xiaomi's Chief Executive, said on Weibo last Monday confirming media reports that the investors consist of private equity funds DST Global, All-Stars Investment, Yunfeng Capitan and Hopu Investment Management together with sovereign wealth fund from Singapore, the GIC.
Xiaomi's data on industry sales from the latest quarters show that it become No. 3 maker of smartphone in the world in just 3 years, following Samsung Electronics Co Ltd and Apple Inc. The recent "round of investment" helps its standing being "one of the world's most valuable private companies."
Xiaomi now valued $45 billion. It is almost three times higher than Lenovo Group Ltd, the No. 1 maker of PC in the world, in terms of market capitalization and more than 4 times its 2013 financing round, which the company garnered the value of $10 billion.
The skyrocketing valuation of Xiaomi reflects the belief of the investors that the company will grow as a global powerhouse despite challenges on intellectual property it faces outside China. India's December sales were halted temporarily because Ericsson, a telecommunication firm in Sweden, filed a complaint regarding patent.
Xiaomi classify itself as an internet company that avoids traditional marketing and its hardware are sold at affordable prices as a channel of distribution of its "real money maker" – services and software.
The firm invested heavily among other manufacturers aiming to build an ecosystem for Internet-connected appliances and devices to spread its extent beyond smartphones.
Other backers of Xiaomi include Singapore sovereign wealth fund Temasek Holdings Pte, Morningside Venture Capital, Qiming Venture Partners, DST, Facebook Inc., and the e-commerce giant Flipkart of India.