Xiaomi Grows Stronger With New Investments Worth $1.1 Billion
Chinese powerhouse Xiaomi refuses to look back in its pursuit to the top. The smartphone maker has become a major disruptive force in the industry. Industry Sales reports show that Xiaomi has reached the third spot in the global market, behind Samsung and Apple. That’s a phenomenal rise for a company that came into existence in 2010. Now, Xiaomi has taken a step ahead by raising $1.1 Billion in the latest round of funding, and its valuation now stands at more than $45 Billion.
The USP of Xiaomi is to provide devices with high specifications at prices comparatively lower than the competition. This coupled with an exclusive internet-based flash sale model makes the device more desirable for the users.
Investors in this round of funding included private equity firms like All-Stars Investment, DST Global, Hopu Investment Management, Yunfeng Capital, and Singapore sovereign wealth fund GIC. The company was previously been supported by Temasek Holdings Pte, Qiming Venture Partners, Morningside Venture Capital and DST.
Xiaomi has seen a meteoric rise in its valuation over just a year. Last year it garnered $10 Billion after the last round of financing. This year it crossed over $45 Billion, thereby towering over its contemporary startups like, Uber, Dropbox, Pinterest, etc. It can, in fact, be considered the most valuable startup right now.
In India, it faces some challenges, thanks to a patent infringement complaint by Ericsson. We’ll have to wait till January to know the fate of companies India plans. Xiaomi has said that India is an important market for them and by the looks of it, Indians have embraced the brand too. It just a matter of time that the company uses its new found wealth to devise a strategy to overcome its hurdles with amicable solutions, something rich corporations have done in the past. This is a rising horse that requires an equally formidable competitor to bring it down.