Xiaomi IPO | World’s Biggest IPO Since 2014

Xiaomi IPO | World’s Biggest IPO Since 2014

Xiaomi IPO | World’s Biggest Since 2014

The Chinese tech giant has filed the biggest IPO in the world since 2014. Xiaomi IPO (Initial Public Offering) listed in Hong Kong will take the company’s valuation to around $100 billion. The company clocked a record revenue of $18 billion in 2017, 67.5% higher than 2016.

Xiaomi incurred a loss of 43.89 billion yuan in 2016 compared to a profit of 491.6 million yuan in the same period. The operating profit for 2017 was 12.22 billion yuan, up from 3.79 billion yuan a year back.

Xiaomi 2017 Operating Profit

Xiaomi IPO:- The chinese smartphone giant is looking to raise $10 billion at a valuation of $100 billion.
Between January and March 2018, Xiaomi controlled a 31% share of India’s smartphone market, up from just 13% a year ago.

Xiaomi Sales & Market Share

Xiaomi saw a massive jump from 14.8 million units shipped in the first quarter of 2017 to 28 million units in the same period of 2018. The company currently holds a global market share of 8.4 percent with a phenomenal growth of 87.8 percent from last year. Xiaomi is growing at a vigorous rate in the multiple global markets outside China.

Xiaomi Market Share

Xiaomi today makes 72 percent of its revenue from home country- China and the remaining 28 percent from rest of the world. It is known to manufacture top-quality handsets at affordable prices, and it has seen huge success with its break-even pricing model internationally. Xiaomi launched its products in India a few years ago and is now looking to penetrate Western markets too.

Xiaomi in Indian Market

Tarun Pathak, associate director at Counterpoint Research says “India will be a priority market. There has been a lot of energy spent on making India-centric products, so after the IPO we will see more energy in the India market and that will be not just devices but the ecosystem as a whole. If you have more investment, you can divert it to some of your best-selling countries and sell products which are as per local needs and preferences.”

Due to its unique features and price point being its USP, Xiaomi has been able to sweep a 31.3 percent market stake in India making it number one smartphone brand in the country. Currently Redmi 5-A is the top-selling smartphone of the brand in India.

Xiaomi IPO means a good fortune for India. Reportedly, the funds will help Xiaomi to expand production in India which means more investment here. The demand for Xiaomi smartphones in India is record high today. The funds won’t be restricted to only the smartphone sector. Xiaomi is looking to expand its services as well in India, such as the music streaming Mi Music.

The chinese giant Xiaomi started up in 2010 with smartphones. It’s USP was to sell top notch specifications smartphones at an affordable price. It has grown to be the fourth-biggest smartphone producer internationally. Xiaomi rose gradually to be the biggest smartphone manufacturer in China. The company has increased its R&D from 2.1 billion yuan in 2016 to 3.2 billion yean in 2017. It has more than 3,600 patents registered in China and 3,500 patents globally.

Today Xiaomi has diversified into a large portfolio of different products including Smart TVs, Smart Speakers, Home appliances, air and water purifiers,etc.

 

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