Chinese smartphone maker Xiaomi has raised $1.1 billion in a new round of funding that values the company at $45 billion. Based on that round of funding, Xiaomi is now the highest valued start-up in the world.
CEO and founder Lei Jun officially announced the investment on Monday morning. His announcement arrives after weeks of speculation.
Yuri Milner’s investment group DST Global, which had previously pumped $500 million into Xiaomi, took part in the latest round. Joining the group were a bevy of new investors in the company. Among those new investors were a private equity group affiliated with Alibaba Group‘s Jack Ma.
Xiaomi’s valuation makes sense from a market standpoint. The company is now the world’s third-largest phone maker, with a strong foothold in China. While the company only reported profits of $56 million in 2013, it has continued to sell tens of thousands of smartphones per minute thanks to its presence in China. The company sells many of its devices through an online web portal.
Xiaomi is selling approximately $10 billion worth of smartphones annually, and the company has began to expand beyond China, setting its sights most recently on India.
Xiaomi’s $1.1 billion funding round was led by former Google executive Hugo Barra, who now serves as Vice President of International at the smartphone manufacturer.
The company’s smartphones have been met with positive reviews, and its ability to produce low to high-end devices for different markets has helped the company thrive in emerging markets.
This article was syndicated from Business 2 Community: Smartphone Maker Xiaomi Raises $1.1 Billion For $45 Billion Valuation
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