China’s Xiaomi Raises Over $1 Billion in Investment Round
Funding Values the Chinese Smartphone Maker at More Than $45 billion, a Source Says
HONG KONG—Xiaomi Corp. is raising more than $1 billion in its latest round of funding, valuing the fast-growing Chinese smartphone maker at more than $45 billion and making it one of the most valuable technology startups in the world, a person familiar with the matter said.
The round, which could close as early as Monday, is led by All-Stars Investment, a tech investment fund run by former Morgan Stanley analyst Richard Ji, the person said. Other participants in the round include Russian investment firm DST Global and Singapore sovereign-wealth fund GIC, which are both already shareholders of Xiaomi.
Yunfeng Capital, a private-equity firm affiliated with Alibaba Group Holding Ltd. Executive Chairman Jack Ma , is also participating in the round.
A Xiaomi spokesman declined to comment.
The $45 billion-plus valuation puts Xiaomi above most other Silicon Valley and Asian technology startups. Earlier this month, U.S. ride-sharing service Uber Technologies Inc. said a new round of funding valued it at $41 billion.
The surge in Xiaomi’s valuation over the past year indicates just how high expectations are as the company expands its business outside China, mainly in emerging markets where there is robust demand for inexpensive smartphones. In its previous round of funding in August 2013, Xiaomi was valued at $10 billion.
Xiaomi, founded by Lei Jun in 2010, has grown rapidly to become the top-selling smartphone vendor in China by offering affordable phones with features rivaling high-end models. Xiaomi phones come with its own customized version of Google Inc. ’s Android operating system, and the company frequently updates the software based on requests from users.
In the second quarter, Xiaomi overtook Samsung Electronics Co. as China’s biggest smartphone maker by shipments for the first time, according to research firm Canalys. This year, Xiaomi expects to sell 60 million units globally, up from 18.7 million in 2013.