It looks as if smartphones are finally on a steady march towards market maturity in China. Turns out that Xiaomi’s CEO Leo Jun has announced this week that the company is now valued at a whopping $4 billion USD! Though he would not reveal, a bit suspiciously, the names of his investors; he declared outwardly that Xiaomi has received a $216 million investment along with this valuation.
Xiaomi is now in its third round of financing, and it has made some impressive strides in China. In two years the company has gone from relatively unknown to impossible to ignore. Last year it received approximately $90 million in venture capital from investors including IDG Capital, Temasek Holdings, Morningside and Qualcomm, with a valuation of $1 billion. Since then, the release of its flagship M1 phone has caught the attention of approximately 3 million smartphone users, according to company sales figures.
Still, according to Lei Jun, his investors are not so concerned with the sales of Xiaomi phones as much as they are satisfied with the “future” of the company. In this era of smartphones, says Lei Jun, the market will soon blow up. He believes that investors are probably looking for the next big company, and they are seriously considering that Xiaomi will play the part.
Source: Sina Tech