Xiaomi reportedly seeking funding that would value the company at a whopping $40 billion

Xiaomi reportedly seeking funding that would value the company at a whopping $40 billion
According to a new report from Forbes, China's rising smartphone star, Xiaomi, is seeking funding that would put its valuation at the massive $40 billion – four times its latest valuation of about $10 billion. A Xiaomi official apparently declined to comment, but Forbes claims that "multiple sources" have confirmed as much. If this ends up being the case, Xiaomi will not only overtake incumbent manufacturers like Sony and Lenovo ($19.5bn and $15.6bn respectively) in market cap, but it will also become the world's most valuable private tech company. 

The 5-year old company managed to sell an impressive 17.3 million devices in Q3 of 2014 according to the IDC, which constitutes a surge of 211.3% when compared to the same period last year. In comparison, Samsung is losing steam and sold 8.2% less units, while local Xiaomi rival Lenovo is up by "just" 38% for the same period. Put simply, Xiaomi is doing exceptionally well, especially considering that its wares are still limited to parts of Asia – the rest of the world has to go through scalpers to get their hands on a Mi device. Obviously, expansion overseas isn't just a matter of setting up distribution – Xiaomi will likely have to deal with litigation as soon as it sets its foot on US/EU soil.

For those of you wondering if Xiaomi is actually making any money on all those device sales (they do price these dirt-cheap), the answer is that we do not know – though the consensus is that it does. Xiaomi's distribution strategy certainly helps with that – the company sells its smart devices pretty much exclusively online and spends little to nothing on marketing, instead relying on its customers to drive up hype and word-of-mouth. It is also mostly agreed that a healthy chunk of profits comes through its app, music and video stores.

source: Forbes, IDC

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14 Comments

1. FAKEPERSONA unregistered

Xiaomi; come to my country...

2. Anshulonweb

Posts: 468; Member since: Feb 07, 2014

after month of using my xiaomi mi3 (220$)... i can't convince myself for buying phone that cost 900-1000$( cost of iPhone 6 and note 4 in my country) ,no matter how good it is....

4. FAKEPERSONA unregistered

from where did you get it? (Country?)

10. Anshulonweb

Posts: 468; Member since: Feb 07, 2014

india.....its no longer available though....

3. DogeShibe

Posts: 1121; Member since: Jan 10, 2014

Lol no f***ing way. Yeah they have some great phones but $40 billion? Even Nokia is not that valuable ... given the fact that they have given us amazing mapping and communication services,pureview tech and some much more.

5. NexusX

Posts: 613; Member since: May 16, 2013

if every chinese buys one of their phones that's 1.3 billion x 300 = $390 billion in revenues alone. if latest flaghips were $300, it is not hard to upgrade every year whatsapp is valued at 16 billion and they make no profit

6. TheMoltenD

Posts: 109; Member since: Jul 13, 2014

Nokia sided with the wrong company for OS, Microsoft killed Nokia.

11. Vinayakn73

Posts: 207; Member since: Oct 05, 2011

nokia ego for not using android and killing their own fabulous meego

7. Arthurhkt

Posts: 725; Member since: Apr 19, 2012

Aside from this news, anyone PA Mi 3 users that had upgraded their MIUI to v6 stable version?

8. Youraveragejoe

Posts: 134; Member since: Oct 31, 2014

waiting for the global version..

9. marcski07

Posts: 600; Member since: Apr 25, 2014

so when will mi4 arrive in Philippines?

12. Chuck007

Posts: 1411; Member since: Mar 02, 2014

The first time I see a truly original Xiaomi phone will be the time for me to buy. There, I said it.

13. xfire99

Posts: 1206; Member since: Mar 14, 2012

OFC they earn money on each device, not with big margin like others big OEMs. Parts cost: Galaxy S5 - 256$ Note 4 - 260$ ip5S - 211$ ip6 - 227$ ip6 plus - 242$ Xiaomi devices, sure cost less than these to manufacture and doubt they losing money on each sold device. But price will goes up, when they become big enough to compete with others more wellknown OEMs.

14. dorfoz

Posts: 156; Member since: Oct 18, 2011

What the hell do you expect on chinese brands anyway? Seriously, I wish they'd have more unique innovations, but pretty much everything they have in their industry is copied from other nations. This isn't just phones, but from cars, tanks, airplanes and others. I'm glad that iOS is an American brand and isn't an open source cuz they can't copy it, but i'm sorely disappointed that Android is and they're riding that donkey like everyone else cuz it's free. Now every Android OEM's are suffering cuz of this.

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