Smartphone manufacturer Xiaomi and venture capital fund Shunwei Capital invested $300m in China-based online video streaming platform iQiyi today.
The stake to be acquired by either investor is as yet undisclosed, though the round also included an investment by internet company Baidu.
Baidu, which had already invested in iQiyi in 2010 alongside Providence Equity Partners, upped its share in the company to a majority stake in 2012.
Xiaomi stated last week that it planned to invest $1bn to enhance its online video content offering, and is also funding another China-based online video company, Youku Tudou.
Both iQiyi and Youku Tudou are following the lead of US-based streaming sites such as Amazon Prime and Netflix by creating their own content, and having access to a trove of original content could help Xiaomi monetise its budget phones more efficiently.