comscore Xiaomi will go public by 2025, CEO Lei Jun says

Xiaomi will go public by 2025, CEO Lei Jun says

Xiaomi doesn't seem to be in any hurry to go for an IPO.


Ever since its not-so-recent mercurial growth, there have been speculations about when Xiaomi will go public. Despite founder and CEO Lei Jun insisting that there were no plans for an IPO, these speculations refused to die. But Jun now has now acknowledged that there indeed remains a plan for going public, just that it won’t be any time soon. Also Read - Xiaomi Redmi Note 11 Pro renders, key specs leak online ahead of launch: Take a look

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Speaking at 2016 Tianjin Summer Davos, Jun said that the company was considering going public, but the earliest that could happen is in 2025. When I founded Xiaomi in 2010, I knew clearly that it would take 15 years for Xiaomi to go public, because the company s business model is too complicated and consumers need time to cultivate belief in our products, Jun was quoted as saying. Also Read - Xiaomi 11i 5G Hypercharge review: Charges really fast, but there’s more to it than that

It’s no secret that the Xiaomi juggernaut has now slowed down. During Q1, 2016, Xiaomi managed to ship around 10.9 million smartphones, which represents a 26 percent year-on-year decline. Last year too, the company is said to have shipped around 71 million smartphones, well below its target of 100 million. In terms of revenues too, Xiaomi was able to generate only $12.5 billion in sales last year, well below the $16 billion that CEO Lei Jun had predicted.

ALSO READ: Xiaomi shipments decline 26 pc, only 10.9 million smartphones shipped in Q1, 2016

There’s a widespread belief that Xiaomi won’t be able to replicate the explosive growth of 2014, and its growing IoT ecosystem too hasn’t performed up to expectations. Despite a fast-growing ecosystem, smartphones still constituted 90 percent of its revenues, and analysts expect Xiaomi’s IoT ecosystem to take more than five years to offset weak smartphone sales.

It is hardly surprising that Jun sees Xiaomi taking another nine years to mature enough to go public. In the meantime, Xiaomi doesn’t seem to be in any trouble financially, and earlier this year, VP Hugo Barra revealed that Xiaomi was self-sufficient and that there were “no plans” to raise money through new investment rounds or an IPO.

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  • Published Date: June 28, 2016 1:30 PM IST
  • Updated Date: June 28, 2016 1:35 PM IST

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