Xiaomi confirms $1.1 billion funding, now valued at $45 billion

Xiaomi obliterated months of rumors and blind guesses today by confirming a new US$1.1 billion round of funding. Xiaomi co-founder Lin Bin posted a statement to Facebook describing the funding as “a new phase for the company” after “stellar results in the four years” since it was founded. Lin also teased a new “flagship device” coming next month.

The massive investment gives Xiaomi – which makes smartphones and a handful of smart gadgets, such as the Xiaomi TV and MiBand fitness tracker – a valuation of US$45 billion, the company added today. That’s more than compatriot rival Lenovo (US$14.4 billion).

Xiaomi last raised funds from VCs in August 2013, but that round was undisclosed. However, the company did reveal that it was effectively valued at US$10 billion at that time.

Here’s a timeline of Xiaomi’s funding:

• US$41 million in December 2010 – that was before Xiaomi’s first phone was launched. At the time it was developing its Android-based MIUI OS.
• US$90 million in December 2011 – this was shortly after the first Xiaomi phone hit the market in September of that year.
• US$216 million in June 2012 – for a valuation of US$4 billion.
• Undisclosed series D funding in August 2013 – for a valuation of US$10 billion.
• US$1 billion bank loan in October 2014 – 29 overseas banks participated in a three-year loan.
• US$1.1 billion in December 2014 – today’s newest round comes as Xiaomi has grown to become the world’s fourth largest phone brand.

Beijing-based Xiaomi is on course to sell 60 million smartphones this year. It currently ships to mainland China, Hong Kong, Taiwan, Singapore, Malaysia, the Philippines, India, and Indonesia. Xiaomi’s VP of international operations, Hugo Barra, recently confirmed that the first launch outside of Asia, into Brazil, is postponed until the first half of 2015.

Xiaomi’s newest funding comes from All-Stars Investment, DST, GIC, Hopu Fund, Yunfeng Capital, and other unnamed participants.

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