Xiaomi raises $1 billion to expand its international market and retail footprint

Xiaomi, the Chinese smartphone startup, has secured a $1 billion loan to develop its international focus and build out its offline sales presence. The company has secured a three-year syndicated loan agreement from 18 banks with Deutsche Bank and Morgan Stanley serving as joint global coordinator, along with Bank of China (Hong Kong) Limited, Deutsche Bank AG, and Wing Lung Bank. It currently operates in 20 countries, and plans to expand further.

In the offline expansion mode, The company has opened 149 Mi Home stores in China, while it has opened its first in India, where it hopes to reach 100 stores over the next two years. The stores are aimed to fuse the online and offline commerce worlds to enable customers to get the best of both, for example in-store picks or ordering after trying. Xiaomi’s business has experienced a resurgence this year following two difficult years in which its previously impressive sales growth slowed. India is clearly becoming a start in its global portfolio with Redmi Note 4 and Redmi 4 being the most sold smartphones in the country during current quarter. This is the first time in last 3 years that Samsung has relegated the coveted spot to any other company.