China’s Xiaomi reportedly set to raise $ 1.5 billion

by bold-lichterman

Chinese manufacturer of smartphone Xiaomi is said to be in negotiations to raise $ 1.5 billion according to the Financial Times. The economic newspaper affirms that the firm is currently negotiating with DST (Russian company having supported Alibaba, Facebook and Airbnb) but warns nevertheless that certain points remain to be finalized.

If these talks are successful, Xiaomi could be propelled ahead of Lenovo and Sony in the ranking of companies with the highest valuations in the tech sector. The manufacturer could exceed that of Uber.

Develop the television offer

If the Chinese manufacturer is best known for its low-cost mobile terminals, it also markets set-top boxes for televisions and offers access to video content. Wishing to develop its offer in terms of television programs, the company also announced on November 4 its intention to invest one billion dollars, or about 800 million euros in this direction. It would thus compete with Alibaba, Baidu or even Tencent, which have also positioned themselves in this market. In China, video-on-demand services and streaming platforms are booming.

Xiaomi is the third biggest seller of smartphones in the world in Q3 2014, behind Samsung and Apple, according to a recent IDC study. Launched in 2010 by Lei Jun, Xiaomi has managed to gain an important place in the Chinese market thanks to its entry-level models. Thus, four years after its creation, the firm would already total 21% of the Chinese market. On the other hand, it is still very little represented on the American and European markets.