Xiaomi has announced it has invested $68 million in Chinese software maker Kingsoft, giving it a 2.98 percent stake in the company, now valued at $2 billion. The stake was acquired from Tencent Holdings, which is the largest investor in Kingsoft. The investment shouldn’t come as a surprise considering Xiaomi’s co-founder and CEO, Lei Jun was also the founder of Kingsoft, which started with making productivity suits for Microsoft Office for mobile devices. Kingsoft has since ventured into cloud storage apps and services as well as mobile security suites. Also Read - MWC 2021 postponed, will happen around June next yearAlso Read - Realme phone with under-display camera spotted online
“We believe that the acquisition fully reflects Xiaomi s strong confidence in the business and potential development of the Group. Partnering with Xiaomi, both as a business partner and strategic investor of the company, would greatly benefit the company and help promote the company s businesses,” the company said in a statement. Also Read - Redmi 9 Review: Overshadowed by its siblings
This is not the first time Xiaomi has invested in Kingsoft. Last year, Xiaomi Ventures had invested $20 million for a 4.7 percent stake in another Kingsoft company, Westhouse that makes games for PCs and mobiles. In 2012, Xiaomi had picked up nearly 10 percent stake in Kingsoft Cloud, another subsidiary of Kingsoft.
Last month Xiaomi announced it had raised $1.1 billion, valuing the company at $45 billion.
Xiaomi has been investing in companies across categories including content, media and hardware as it plans to create an ecosystem of connected devices and services to fuel its growth. It has recently invested in many Chinese companies,including home appliance maker Midea, video-streaming platform iQiyi and Youku Tudou, the country s largest video streaming company. VP Hugo Barra had recently also said that the company is looking to invest in Indian startups as well.
Even though Xiaomi’s core product portfolio includes, smartphones and tablets, the company has been foraying into different verticals and have released devices like Mi Box, Mi Air Purifier, Mi headphones, smart TVs and even a blood test device.