Xiaomi raises more than $1 billion in funding, valuation in excess of $45 billion

The up-and-coming mobile handset manufacturer in China is none other than Xiaomi, and expectations are stratospheric for the technology start-up.

Xiaomi has been making quite the name for itself with an impressive line-up of affordable smartphones. Even one of its more recent releases, the Mi4, is a flagship contender with potent and current hardware, and exceptional build quality, all for under $400.

On the entry-level end of the spectrum, Xiaomi’s Redmi 1S also packs quality specs, like a Snapdragon 400, and a 720p 4.7-inch display, for under $100 in developing markets like India. Rumor has it that we will get to see a new flagship announcement, the Mi5, at CES next month in Las Vegas. Former Google executive, Hugo Barra, is the company’s Global vice-president and he has been adamant about ensuring timely OS updates to the product line-up. Xiaomi even has its own app store.

With action like that, it is easy to entice investors to write big checks, and that is what is happening in what is likely to be a very short round of fund raising. By Monday’s expected conclusion of funding, Xiaomi will have taken in over $1 billion, and institutional investors are giving the company a valuation of over $45 billion – 350% higher than just over a year ago. Bear in mind, the company is not even four years old yet.

Xiaomi has already surpassed Samsung’s shipment volume in China, and while no future is guaranteed, we can expect to see the new smartphone darling of China to continue expanding.

source: The Wall Street Journal