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 - Redmi Note 10T 5G first sale today: Price in India, sale offers, and moreAlso Read - MIUI 13 to add 3GB of RAM to any Xiaomi phone with its memory expansion feature
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 - Amazon Prime Day sale deals revealed: Discount on OnePlus Nord CE, Mi 11X, Samsung Galaxy M42
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.
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.