Xiaomi, the Chinese smartphone maker, said today that it has secured a whopping $1 billion loan to expand globally and build out its retail presence.
The company has revealed that it has secured a three-year syndicated loan agreement from 18 banks across Europe, Middle East, India, China, Hong Kong and Taiwan jointly coordinated by Deutsche Bank and Morgan Stanley, with Bank of China (Hong Kong) Limited, Deutsche Bank AG, and Wing Lung Bank.
It previously raised a three-year term US$1 billion syndicated loan in 2014, months before raising a $1 billion venture capital round at a valuation of $45 billion. The new load will be invested in strengthening as well as expanding its international footprint, although the company has not disclosed its next target countries yet. Xiaomi currently has the presence in over 20 countries either through its sales network or sales partners. It has opened 149 Mi Home Store in China and has started its first international retail network in India where it aims to open 100 stores in the next two years.
Xiaomi has been struggling with its sales in the past two years, largely due to heightened competition from local competitors Huawei, Oppo, and Vivo. However, the company has posted a rather impressive sales figure this year. In the second quarter, it claimed to ship 23.16 million smartphones, a 70% increase on the previous quarter.