HMD Global, the company behind the Nokia Phones that we see today, has raised over $100 million from various investors. With this new investment, HMD announces that its total market valuation has surpassed USD $1 Billion. This round of investment comes from multiple sources, primarily led by Ginko Ventures, DMJ Asia Investment Opportunity Limited and Wonderful Stars Pte. Ltd., a subsidiary of FIH Mobile Ltd.
HMD Global, the young Finnish startup, is currently in its second year. The company was founded in December, 2016. HMD also revealed some sales and revenue figures. So, during 2017, HMD sold over 70 million Nokia branded phones in over 80 countries. However, activation came from a much larger number of 170 countries. This itself shows how popular the Nokia brand is. People from all over the world are so eager to get hold of a Nokia phone that they are importing it from other countries even if HMD has not yet started official operations in their country.
In FY 2017, HMD Global posted a total revenue of EUR 1.8 billion (USD 2.13 billion) along with an operational loss of EUR 65 million (USD 77 million). This is roughly $1.1 of loss per Nokia branded phone sold in the market. Now, given the fact that HMD has been on an expansion spree, a loss was expected. A company is also said to be in a good shape as long as there are investors showering it with cash.
HMD will be making strategic investments to further expand its portfolio and business operations in more countries. We wish them the best of luck. Hopefully it is now the time that they start investing in innovation which puts them in front of the competition. Nokia phones were best known for their camera, design and build quality. However, HMD has not perfected any of them yet. Hoping to see some great things coming out from HMD’s new R&D lab in China.