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Xiaomi looking to raise a further $1.5 billion, valuing the company at $40 billion

June 16, 2025

Chinese smartphone manufacturerXiaomihas its sights set on global expansion, but to get there the company is going to need some spending money. $1.5 billion is Xiaomi’s target capital to raise from investors in a new round of fundraising, which should be enough to finance some major investments.

This private stake sale looks set to value Xiaomi’s business at just over $40 billion, which is greater than the combined value of Lenovo and Sony, and not far from Facebook’s $50 billion valuation. This may seem like a huge sum for such a young company, but it has quickly become one of the major players in the global handset market. However, eager investors should be aware that Xiaomi isn’t planning to list the company publicly for another five years, meaning a wait for any potential return on their investment.

xiaomi mi4 first impressions aa (6 of 13)

Xiaomi hasn’t commented on the fundraising round nor on exactly what it plans to do with the extra cash. Most likely the company will use the funds to continue its expansion around Asia and to help make headway into Brazil, which CEO Hugo Barradiscussed last week. New smartphones, tablets, and a range of other branded products for its growing ecosystem are also likely on the cards.

The company hasn’t exactly been strapped for cash recently though. Xiaomi has announced big spending on online video content, new data servers for global customers, and plans to enter the smart home business all within the space of a single month. The company has also seenbooming smartphone salesthis year and has only been outsold by Apple and Samsung.

With smartphone shipments and company profits reaching anall-time high, and investors keen to pump in additional funds, Xiaomi won’t be slowing down anytime soon.

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