Xiaomi Inc. joined the “Billion-Dollar Club”

Xiaomi Inc. joined the “Billion-Dollar Club”

According to the Tencent Finance report Xiaomi Inc. chairman and CEO Lei Jun on evening of August 22 confirmed that Xiaomi Inc. has completed a new round of financing, and the company’s estimated value has reached $ 10 billion.

Previously Xiaomi Inc. kept new financing actions each year since 2010. By the end of 2010, Xiaomi completed financing of $ 41 million, the company’s valuation reached $ 250 million; by the end of 2011, Xiaomi completed $ 90 million financing, and the valuation hit $ 1 billion; in the end of June 2012, Xiaomi again completed $ 216 million financing, the company valuation amounted $4 billion.

This means that Xiaomi Inc. has become China’s fourth IT company, behind Ali Group, Tencent and Baidu. In term of hardware companies in China, it is second only to Lenovo Group, the market capitalization is $ 7.5 billion exceeding BlackBerry.

Xiaomi Inc. is a Chinese smart mobile phone producer, it is main business strategy is to produced smart phones which are priced at around RMB 2,000 (US$ 320) with similar features and functions like Apple’s iPhones. And the success of Xiaomi Inc. proved that price does matter, in particular in the rising economies where most people can’t afford an expensive smart phone though they desire to have one.

According to internal estimates, the sale of Xiaomi series smart mobile phones by the end of this year will be more than 25 billion yuan, doubling the sale of last year. Mobile phone sales this year is expected to reach 15 million units while next year’s goal is 25 million units.

Posted in: IT

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