Smartphone maker Xiaomi plans to acquire a $13.7m stake in China-based GPS navigation software company Careland, it said in a statement on Thursday.
Careland will sell 7 million shares at RMB 12.00 ($1.96) per share. Xiaomi subsidiary Tianjin Jinxing Investment will acquire 4.67 million shares, and Tianjin Shunmi Investment, another Xiaomi subsidiary, will purchase the remaining 2.33 million shares.
The funding will allow Careland to further develop its GPS technology and expand its mobile internet business. Venture capital firm SAIF Partners was an early investor but has since divested its stake, and Careland’s current backers reportedly include Fortune Venture Capital and Shenghuayang Venture Capital.
The deal follows a series of diverse investments by Xiaomi so far this year. Last month it invested $25m for a 20% stake in home health care company iHealth Labs and led a $37.2m series B round for online lender JimuBox.
The investments highlight the growing power of China’s technology giants, including Xiaomi and its peers Alibaba, Qihoo 360 and Tencent.
Founded in 2010, Xiaomi has fast become one of the leading tech firms in China. The company is currently valued at more than $10bn and has more than 3,000 employees.