Xiaomi, the Chinese technology upstart has closed a $1.1 billion round of funding, at a valuation of $45 billion. This puts China in possession of the most valuable tech startup in the world, a title that previously belonged to Uber, which earlier this month was valued at $40 billion.
The funding round, which was completed last week, was announced by Xiaomi CEO and founder Lei Jun on a post on Chinese social media site, Weibo. Investors participating in this round include All Stars Investment, DST Global, GIC Private Limited, Hopu Investment Management Co. Ltd. and Yunfeng Capital, an investment firm founded by Alibaba Group Chairman Jack Ma.
Founded in 2010, Xiaomi has seen explosive growth in recent years, becoming the third-largest smartphone manufacturer in the world with 18 million handsets shipped, according to Strategy Analytics. But despite the growth, profits remain slim for the firm, which posted 347.5 million yuan ($56 million) in net profit in 2013, according to Reuters. Xiaomi is known for selling its smartphones primarily through its online distribution channels, a model that Huawei and other competitors have followed in recent months.
The company posted a valuation of $10 billion when it completed its previous round of funding in 2013, equivalent to the company’s current annual revenue stream, unnamed sources told Re/Code.
While Xiaomi has stepped up its efforts to expand into new markets, it has faced some obstacles in recent weeks, including the temporary suspension of sales in India due to court order related to a patent dispute with Ericsson.