Funding puts value of China's Xiaomi at $4B

Chinese smartphone maker closes fundraising round effort that now values company at US$4 billion, reveals microblog post by local Internet player.

Xiaomi has received funding which now values the Chinese smartphone maker at US$4 billion, with its financial documents showing a net profit of 2.5 billion yuan (US$393 million).

According to a microblog post Sunday on Sohu Weibo, Qihoo 360 Chief Executive Zhou Hongyi said: "Believe it or not, Xiaomi is indeed valued at US$4 billion after its successful round of funding."

Citing Xiaomi's financial documents, Zhou added that Xiaomi had sold 3 million to 5 million handsets so far this year and each at a profit of 700 yuan to 800 yuan (US$110 to US$126). The startup also reported a net profit of 2.5 billion yuan (US$393 million), he added.

Reuters reported last week on a rumor that Xiaomi was in the final stages of its fundraising efforts. Russia's Digital Sky Technologies was reported to be a possible investor.

According to Xiaomi's Web site, its smartphone retails at 1,999 yuan (US$315) and is China's first smartphone to have a dual processor.

A report Thursday by local newspaper China Daily said Zhou and Xiaomi's founder Lei Jun had been bickering online with both criticizing each other on their micro blogs.