Chinese smartphone maker Xiaomi is to buy a 3% stake in software maker Kingsoft, in a deal with Tencent reportedly worth $67.99m.
The latest investment comes as the Chinese smartphone maker expands its prospects after raising $1.1bn in new funding last month, which made it the world’s most valuable start-up with a $46bn valuation.
Being a substantial shareholder with an overall 12.58% stake, Tencent will still own 9.6% of Kingsoft’s stock upon the transaction, set to be completed by 30 January.
As part of the deal, the Chinese smartphone maker will procure 35.3 million shares of Kingsoft, the company said in a filing.
The current founder and CEO of Xiaomi, Lei Jun, is also Kingsoft’s chairman and had been the CEO of the software maker.
Kingsoft noted that the collaboration will benefit the company and assist in promoting its business.
The Chinese firm has also reportedly acquired a 1.3% stake in electrical appliance manufacturer Midea Group, in order to expand its ecosystem of internet-connected devices and to go beyond smartphones.
Last week, Xiaomi launched its new flagship smartphone, the MiNote, similar to Apple’s iPhone 6, boasting a 3D-curved Gorilla Glass 3 screen with a metal frame.