Sarang Ahuja’s latest post:
The Chinese smartphone giant Xiaomi, which has become the biggest smartphone maker in China and thereby spring-boarded itself into the position of third biggest in the world, is now valued at $45 billion after closing its most recent round of funding in which it raised a staggering $1.1 billion. Since its inception, the company has been consistently increasing in value each year and by a bigger margin each year. In June 2012 it was valued at $4 billion, then $10 billion in summer 2013, and now more than four times that much at $45 billion. Let’s just say that as far as the founders of this company are concerned, the company is moving in the right direction (to put it mildly).
But Xiaomi is not solely focused on success in China, though it is very important for them to be successful there, since it is the largest smartphone market in the world, with more than 500 million smartphones expected to be sold in the country this upcoming year, triple the number that is expected to be sold in the US. They also plan to expand, especially to emerging markets like India, Indonesia, and Brazil. There are also expectations that Xiaomi will go public, though those from inside the company who have commented on those prospects have said that it is not quite ready for and IPO.
This valuation is particularly notable because at $45 billion dollars, Xiaomi has surpassed another tech start up valued at $40 billion plus, Uber, to become the most valuable tech start up in the world. This will be an interesting company to pay attention to as it begins to expand to more markets.
Read the full New York Times article here.
from Sarang Ahuja http://sarangahujafinance.com/xiaomi-45-billion-valuation/