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Business News/ Companies / Xiaomi looks to add water purifier to home line, investor says
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Xiaomi looks to add water purifier to home line, investor says

The purifier was designed by Zhimi, one of 25 startups in which Xiaomi has invested

Xiaomi said on Monday that its valuation rose to $45 billion. Photo: BloombergPremium
Xiaomi said on Monday that its valuation rose to $45 billion. Photo: Bloomberg

Beijing: Xiaomi Corp. is working on a water purifier as it expands its range of home products that can be controlled through the Internet, according to an early investor in the company.

The company has shown some backers a prototype of the new purifier, said Jenny Lee, managing partner at GGV Capital, an early investor in China’s largest smartphone vendor. Xiaomi spokeswoman Joy Han declined to comment on products that haven’t been announced.

Xiaomi said on Monday that its valuation rose to $45 billion, following a $1.1 billion funding round that included investors such as billionaire Yuri Milner’s DST, Singapore’s GIC Pte and All-Stars Investment Ltd. “Belief in chief executive officer Lei Jun’s ability to push from smartphones into home electronics was one reason investors valued the Beijing-based company so highly," Lee said.

“They have a product pipeline," Lee said in a phone interview on Tuesday. “Going forward it’s not just going to be the Xiaomi phone or the TV. The upside and the investment around Xiaomi is the hope they can get into the smart home."

“Xiaomi will unveil a new “flagship product" next month," Lei said in a statement on Monday, without supplying further details. GGV’s Lee didn’t say if the water purifier would be that product.

Lei this month unveiled an air purifier for homes that sends pollution readings to mobile phones and alerts users when its filter is dirty. The purifier was designed by Zhimi, which Lei said was one of 25 startups in which Xiaomi has invested.

Light bulbs

The company on 18 December also began selling a light bulb designed by another startup called Yeelight that can change colors by remote control.

Xiaomi, which means millet in Chinese, was founded in 2010 to make software for mobile devices running Google Inc.’s Android system. The company subsequently released products including a tablet computer, a television set-top box and TVs that connect to the Web.

“The lightbulb and air and water purifiers show how Xiaomi can invest in startups to expand its product line and push further into the home," GGV’s Lee said.

The market for Internet-connected appliances will grow to $7.1 trillion by 2020, from $1.9 trillion last year, estimates market researcher IDC.

“The smart home is a much bigger market," Lee said. “Homes are getting connected with phones, tablets and TVs in ways that are highly synergistic. Xiaomi definitely wants to be part of that. That is their key strategy."

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Published: 30 Dec 2014, 03:57 PM IST
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