Round of funding to be led by All-Stars Investment.
Chinese smartphone maker Xiaomi is reportedly raising $1bn in a new round of funding, pushing the total valuation of the company to $45bn.
The new round of investment is expected to be led by All-Stars Investment and includes present shareholders of the company, including Singapore sovereign-wealth fund GIC and Russian investment firm DST Global, reported the Wall Street Journal.
According to reports, Yunfeng Capital, which is affiliated with Alibaba Group, is also expected to be a part of the funding.
Xiaomi’s valuation has drastically increased since its inception four years ago, which has reportedly raised hopes amongst investors about the company’s potentials, despite the challenges it is facing outside China.
Recently, the Delhi High Court issued a temporary ban on the sale and import of Xiaomi handsets due to allegations put forward by Ericsson which claimed that the Chinese phone maker was using some of its technology without paying royalties.
However, a Delhi High Court later lifted the ban and granted permission to import the handsets to India.
The smartphone maker has not disclosed its earnings but according to reports the Wall Street Journal, the company made $56m in net profit in 2013.