Consumer electronics manufacturer Xiaomi has agreed to pay almost $103m to increase its share of China-based internet-of-things (IoT) product maker Zimi from 22.5% to 49.9%, according to a stock market filing.
The transaction will consist of approximately $25.8m in cash, with the rest to be paid in stock. Xiaomi is buying the shares from investment firm Zifone Holdings and unnamed Zimi executives and employees.
Founded in 2012 and also known as Jiangsu Zimi Electronic Technology, Zimi produces smart power banks for mobile device charging. It also provides in-car charging and Bluetooth speakers.
Venture capital firm GGV Capital led the company’s $15m series B round in 2015, after it had reportedly raised an undisclosed amount of series B funding from Xiaomi the previous year. Its investors also include VC firm Shunwei Capital.
Zimi forms part of the ‘Xiaomi ecosystem’, a collection of companies that produce electronic products compatible with Xiaomi products. It has reportedly supplied funding for about 300 companies through the initiative.
The filing suggests that Zimi’s technology could hypothetically be applied to help Xiaomi standardise the charging mechanism across its mobile device and IoT-equipped products.
Image courtesy of Zimi.
