Xiaomi Turns Out to be Most Valuable Tech Start-up
Yuri Milner, the investor, has said that the valuation of Xiaomi Corp could actually double and reach $100 billion particularly after its recent financing round. The billionaire Milner was an early investor in not just the largest smartphone vendor in China, but also in Alibaba Group Holding Ltd and Facebook Inc. He has said that Xiaomi has the same potential as the other two companies to reach the valuation of $100 billion. Today, the company announced that it had reached a valuation of $45 billion after receiving a funding of $1.1 billion, which included All-Stars Investment Ltd., GIC Pte of Singapore and Milner’s DST.
In a telephone interview, the investor said that he had been attracted by the size of opportunity presented by the company. He added that he didn’t think that there was any company that had managed to earn $1 billion in revenues as quickly as Xiaomi had managed. It had managed to surpass every benchmark and the speed of its growth had been simply unprecedented. Lei Jun, the Chief Executive Officer and founder of Xiaomi, is undertaking expansion overseas and launching new products, which include an air purifier for increasing their growth in China where it had managed to overcame the South Korean giant, Samsung Electronics in terms of smartphone sales.
A combination of low prices and high-end features was powerful enough for attracting customers and now Lei is expanding into services and content to maintain their lead. Xiaomi came out as the third largest vendor of smartphones in the September quarter, right behind Samsung and Apple. Next year, the company plans to sell about 100 million phones. A new flagship product will also be unveiled by the firm next month, according to a statement made by the CEO, but no further details were provided regarding this matter.
Milner said that Xiaomi possesses the potential of becoming the first global consumer brand of China. He asserted that the firm has the capability of taking significant market share worldwide in terms of the smartphone market, but that isn’t it. In fact, it also has the potential of targeting various other interesting categories. He said that Xiaomi is the first firm that sells hardware predominantly, which has been invested in by DST. In June 2012, earlier funding rounds had been initiated by the firm at a valuation of $4 billion whereas in August 2013, the valuation had reached $10 billion.
As opposed to any other investor, DST has provided the most funding to Xiaomi. According to estimates made by analysts, the revenue of the China-based smartphone maker are expected to double in this year and surpass the figure of $12 billion. At its current valuation of $45 billion, the firm has a value that’s nearly 4 times more than the expectations of the analysts. The company expanded beyond its home-base in Beijing to areas such as Singapore, India, Malaysia, Indonesia and Philippines. The company has said that it will be adding new markets including Turkey, Brazil, Mexico and Thailand next year.