LeEco says gets $600 million funding from Chinese investor
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New Delhi: Chinese tech giant LeEco on Tuesday named Anthony Gao as the company’s president for the Asia Pacific and chief executive of its Hong Kong unit and said it had secured $600 million in fresh funding from a Chinese institutional investor.
LeEco refused to disclose who the investor is.
The news came a week after LeEco’s chairman and co-founder Jia Yueting said in a letter to employees the company was running out of cash to sustain a headlong rush into businesses from electric cars to smartphones, according to a Bloomberg report.
The first half of the funding will be received within November and will support LeEco Global and LeEco’s electric vehicle business, the company said in a statement. It did not disclose details about the second tranche of funds.
“Although there are doubts surrounding LeEco, true innovative entrepreneurs can see the investment value of LeEco and its enormous growth potential in the future,” said Hank Liu Hong, co-founder and vice chairman of LeEco.
Gao, who was heading LeEco’s virtual reality and augmented reality business as well as MFL (Made for LeEco), will immediately assume the new position and will be responsible for operational management, He will report directly to Jia.
Before joining LeEco, Gao spent 17 years in Huawei Technologies Co. Ltd.
“LeEco is undergoing a series of strategic and organizational upgrades as it enters the second phase of its strategy, where the focus shifted from aggressive expansion to positive and sustainable growth and acquisition of high value user,” the company said.
Founded by billionaire Jia and Hank Liu Hong in 2004, LeEco positions itself as the Netflix, Apple and Tesla of China. Apart from selling smartphones and online content, the company sells TVs, electric vehicles and virtual reality headsets.
The company employs more than 15,000 people across the world. The company is headquartered in Beijing, China and Silicon Valley, US, and has regional offices in Hong Kong, India and Russia.