Xunlei, a China-based developer of downloading software, has secured $310m in an equity round that included a $200m investment by mobile internet company Xiaomi, Tech In Asia has reported.
China-based software producer Kingsoft provided an additional $90m, while the remaining $20m was supplied by IDG Capital Partners, the China-based corporate venturing subsidiary of media company IDG, and venture capital firm Morningside Ventures.
IDG funded Xunlei’s $1m series A round in 2004, and Google invested $5m in a $20m round in 2007 for a stake worth 4% at the time, with the remaining $15m coming from IDG, Morningside, Ceyuan Ventures and Fidelity Asia Ventures, according to Pacific Epoch. Xunlei had planned a $200m initial public offering in 2011, only to subsequently withdraw, reportedly because of doubts surrounding the illegal torrenting its software was being used for.
Although Xunlei is best known for its downloading software, the company also operates a licensed video streaming site called Kankan, which could provide opportunities for synergy, as Xiaomi gets further into the hardware side of its business. Xiaomi has targeted 60 million phone sales in 2014, and securing a service like Kankan for the phones would serve to dramatically boost the services side of its business.