Chinese smartphone manufacturer Xiaomi could see its $45 billion [£28.9 billion] valuation more-than-double to $100 billion [£64.3 billion] following another successful funding round for the world’s third largest smartphone manufacturer.
The company closed a $1.1 billion [£710 million] round that included DST Global, All-Stars Investment, GIC and a handful of others with DST investor Yuri Milner confident that it can eventually hit the $100 billion [£64.3 billion] mark.
“I was attracted by the size of the opportunity ahead of them,” Milner told Bloomberg “I don’t think there’s any company that has reached $1 billion [£640 million] in revenue as fast as Xiaomi. In every conceivable benchmark, it’s almost unprecedented in terms of its speed of growth.”
Xiaomi is just three years old and in that time it has used growth in the Asian smartphone sector to propel itself to become China’s number one smartphone maker and on a worldwide basis it only trails Apple and Samsung.
It’s anticipated that the firm will use the latest round of funding to expand its product offering worldwide and at the centre of that strategy is a new “flagship product” that CEO Lei Jun announced will be unveiled next month.
“It has significant potential to become China’s first global consumer brand. In smartphones, Xiaomi can take significant market share globally, but that doesn’t cover the whole opportunity. There are a number of other interesting categories that Xiaomi can target,” Milner added.
Xiaomi’s revenue is on track to top $12 billion [£7.7 billion] this year, according to estimates from Counterpoint Research’s Neil Shah, and the company expects to ship over 100 million devices in 2015.
Another centrepiece to the Xiaomi plan for domination is through a number of other consumer electronics devices such as TV set top boxes and tablet computers that it has already unveiled.
“It is the expectation that Xiaomi will be able to establish an ecosystem like that of Apple that includes hardware, software and services, an ecosystem that works not only over mobile phones but also other devices,” said Sandy Shen, an analyst at Gartner.