Xiaomi CEO Confirms Valuation of Xiaomi Tech has Reached $10 Billion

Aug 24, 2013 12:32 PM EDT

(Photo by Fortune Live Media : Xiaomi CEO Lei Jun)

August 23^rd, Xiaomi Founder and CEO Lei Jun confirms via his Sina Weibo account that Xiaomi Inc. has a valuation of $10 billion dollars after a new round of funding.

Xiaomi Inc. is a privately owned company that designs, develops, and sells smartphones, apps, and consumer electronics. Its products include smartphones, digital media receivers and accompanying software products. Since the release of its first smartphone in August 2011, Xiaomi has gained market share in Mainland China and has expanded into developing a wider range of consumer electronics.

Yesterday, Li Xueling, CEO of YY Inc., which is a major Chinese video-based social network, posted a micro blog via Sina Weibo. He said: "I heard Xiaomi Inc. has gained a valuation of $10 billion." Later, Xiaomi CEO Lei Jun forwarded Li Xueling's micro blog and answered: "Yep, we've nailed it. Thank you all very much."

According to statistics, Xiaomi has completed four rounds of funding so far. In 2010, Xiaomi had a valuation of $250 million after raising $41 million. In 2011, the company reached a valuation of $1 billion after raising $90 million. And in June 2012, Xiaomi had a valuation of $4 billion after raising $216 million, bolstering a company backed by Temasek Holdings and Tung's Qiming Venture Partners.

Earlier in July 2013, some insiders from Chinese investment banks have already disclosed that Xiaomi Inc. is processing its latest round of funding. And Russia's international investment firm DST is Xiaomi's investor, while China's largest Internet Company Tencent Holdings is the real investor behind the scenes.

Xiaomi co-founder Li Moqiang has said that more details will be released on September 5, the day of Xiaomi's upcoming press event. Why is Xiaomi smartphone getting more attractive in China, even more popular than iPhone? Take the prices as an example. In China, Apple sells the iPhone 5 from $864 while Xiaomi's most expensive handset is only $277. What's Xiaomi's next move? Let's wait for it.