Xiaomi, the China-based smartphone manufacturer backed by technology research and media company IDG and wireless technology producer Qualcomm, has received an undisclosed amount of funding from Ratan Tata, TechCrunch reported yesterday.
Ratan Tata, chairman emeritus of holding company Tata Sons, which owns conglomerate Tata Group, made the investment. Xiaomi raised the funding from Tata, its first India-based investor, as it endeavours to take on the Indian market.
Xiaomi has not disclosed the size of Tata’s stake, or the valuation at which he made the investment, but confirmed he would also be brought on board as an advisor.
Xiaomi secured $1.1bn in January this year for a series E round backed by DST Global, All-Stars Investment, GIC, Hopu Fund and Yunfeng Capital. The company had raised a total of $347m across its series A, B and C rounds, but has not disclosed the size of its 2013 series D round.
IDG Capital, a venture capital affiliate of IDG, led Xiaomi’s $90m series B round, which included participation from Qualcomm, Singapore’s sovereign wealth fund Temasek, Shunwei, Qiming and an angel investor, in 2011. Morningside Ventures has also invested in the company.
Xiaomi first entered India when it released the Mi 3 smartphone in July 2014, and has been selling the phone through an exclusive agreement with e-commerce company Flipkart. It has been increasing its focus on the country since then, and is set to release a dedicated phone for the market.