Chinese smartphone maker Xiaomi is in the process of raising more funds at a valuation of $45 billion. All-Stars Investment, a tech investment fund run by former Morgan Stanley analyst Richard Ji, will be the lead investors in this round, WSJ reports. Also Read - Friendship Day gifting ideas for your young tech-savvy besties under Rs 5,000Also Read - RedmiBook laptop launching on August 3, Mi Notebook-like design and colours teased
Xiaomi hopes to raise more than $1 billion in this round. This valuation makes the company the most valuable tech startup in the world. Existing investors DST Global and GIC are also participating in the latest round. The report also said that Yunfeng Capital, a private-equity firm affiliated with Alibaba Chairman Jack Ma, is also participating in the round. The round could close as early as tomorrow. Also Read - Redmi K40G in the works: Will this be the Poco F3 Pro or Mi 11X Gaming Edition?
In its previous round of funding in August 2013, Xiaomi was valued at $10 billion. Analysts say that Xiaomi’s valuation is high, because of its product demand in emerging markets. As the company expands outside Chinese market, there is robust demand for its inexpensive smartphones, including India.
Xiaomi was founded by Lei Jun in 2010 and in this year’s second quarter, the company overtook Samsung as China’s biggest smartphone maker for the first time. Its demand was also on a rise in India, where it launched only this year, but the Delhi High Court recently issued a stopper on the sale and import of Xiaomi’s handsets. However, temporary permission was given to the company to resume its imports, though with conditions.