Chinese smartphone maker Xiaomi is reportedly in talks to raise about US$1.5bn in a private stake sale, which would value the company at more than US$40bn. Negotiations with investors, including Russian internet company DST, which has also backed…
Chinese smartphone maker Xiaomi is reportedly in talks to raise about US$1.5bn in a private stake sale, which would value the company at more than US$40bn.
Negotiations with investors, including Russian internet company DST, which has also backed Chinese e-commerce giant Alibaba and Facebook, are ongoing, the Financial Times cited people familiar with the talks as saying.
If completed, the transaction would value four-year-old Xiaomi at more than rivals Sony and Lenovo combined. According to research firm CBInsights, it would also be on par with Facebook’s 2011 funding round, the last before it went public, which valued the venture capital-backed social network at US$50bn, the report stated.
Xiaomi, China’s biggest smartphone vendor by shipments, would reportedly like to secure the funds from Asia-based investors.
The Beijing-based company was not immediately available to comment on the report.
Last week, Xiaomi reportedly secured a US$1bn, three-year loan from 29 banks in its first foray into international lending markets. Deutsche Bank, JP Morgan and Morgan Stanley were the lead banks on the transaction, according to reports at the time.
Xiaomi, founded by entrepreneur Lei Jun, has sought to distinguish itself from local rivals, which include Apple and Samsung, by producing lower-cost handsets, tablets, routers and TV equipment. It is also investing in TV content.
The company sells directly to customers online, helping to keep its prices competitive.
Xiaomi says it is ready to go global and there has been speculation that it will use the US$1.5bn to push into new markets in Asia and Latin America.
The company launched in Singapore this February and plans to move its international headquarters there. It has also launched products in Taiwan, Hong Kong, Malaysia, Philippines, India and Indonesia.
