Despite a decent enough slowdown in sales and multiple revision of targets, looks like Chinese upstart Xiaomi isn’t really worried about finances. The company has declined any intentions of going for an IPO, or even upon another round of funding, in the foreseeable future.
Xiaomi’s Global Vice President, Hugo Barra stressed upon the same, while in talks with Reuters recently.
The news is somewhat surprising, considering that it managed to miss its already reduced target of 80 million. That is not even taking its recent expansion plans into account, which include two new projected factories in India.
However, it seems like the company has things well in hand and doesn’t need any external resources to meet its needs. As per various sources, the company currently has somewhere in the north of $1.5 Billion upon its hands.
Slowing sales in China though, have prompted the company to expand, and expansion as we all know, requires cash. Certain quarters are also stipulating that the company is looking to raise $110 million in equity investments (for a 0.45% stake).
We hope for Xiaomi’s sake, that the rumor is untrue. Why? Because it will put the value of the company somewhere around $25 Billion — great right? No. — almost $20 Billion less than its estimated valuation at the end of 2014.
Well, between its new projects, expansion plans and the investment question, 2016 promises to be a happening year for the world fifth largest smartphone manufacturer.