Now you can expect even more from Xiaomi, the Chinese manufacturer has announced on Friday it has inked a billion dollar loan deal to power up its initiative to stack up brick and mortar stores in China and expand overseas.
A three year syndicated loan will help Xiaomi to expand its horizons, as other tech giants such as; Baidu and Alibaba are also pondering to expand their business in other dimensions due to slow growth in e-commerce and intense competition, Baidu is investing in driverless cars and artificial intelligence actively.
Xiaomi first raised three-year syndicated loan in 2014 which boosted its product development phenomenally.
Mobile market competition is undoubtedly severe that Xiaomi now focusing more on developing channels that could boost their phone sales in order to position well in the market against its rivals Huawei, Oppo and Vivo however, the company’s sales were up by 70% in the second quarter of 2017 as compared to the previous period. Xiaomi shipped 23.16 million smartphones during this period, the company said in a statement. Xiaomi also determined to ship over 100 million units in the next few years.
The loan raised by Morgan Stanley and Deutsche Bank involved 18 banks globally, including the banks in China, Europe, Hong Kong, India and Taiwan. Xiaomi Chief Financial Officer (CFO) Shou Zi Chew said in a statement, “The global syndicate of top-tier banks is a strong endorsement of Xiaomi by the international capital markets.”
After raising the loan Xiaomi is expected to expand in China as well as international markets. Xiaomi target of shipping 100 million units in the next coming years would be much easier with this investment and the popularity of brand is not stopping anywhere near.
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