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HMD Global raises $100m to fuel Nokia devices push

By Emeka Aginam
To scale business operations and fund the company’s growth in its second year, Finish based start-up, HMD Global, the home of Nokia phones, has disclosed that it has raised additional 100 million dollars from multiple investors.

Nokia 3310

This round of investment, according to the company has been led by Geneva based, Ginko Ventures via Alpha Ginko Ltd. with participation from DMJ Asia Investment Opportunity Limited and Wonderful Stars Pte. Ltd., a subsidiary of FIH Mobile Ltd.

With this development, HMD Global’s current market valuation has exceeded USD 1 billion, giving it a unicorn status as the company will be making strategic investments in scaling its fast-growing business operations.

In the current financial year, the company plans to aggressively expand its portfolio of Nokia smartphones and double down on expanding channel reach in strategic markets while continuing to deliver innovation where it matters most to consumers.

The Chief Executive Officer of HMD Global, Florian Seiche, while speaking on the new development said that, “We are thrilled to have these investors join us in our journey to script the next chapter of Nokia phones. It is our ambition to deliver great smartphones that delight our fans while staying true to our Finnish roots and the hallmarks that the Nokia brand has always been known for. We aim to be among the top smartphone players globally and our success to date gives us the confidence to further continue on a growth path in 2018 and beyond.”

Also speaking, Jean-Francois Baril, Ginko Ventures Managing Director and Founder, HMD Board member said that, “We are proud to contribute to the next phase of Nokia phones and the successful raising of this investment round. Personally, as someone who has long been associated with the Nokia brand, this journey is very exciting. From its roots in Finland, HMD Global has chosen an agile strategy that leverages global relationships and collaborations to achieve its phenomenal growth.”

Demonstrating incredible passion, engagement, and enthusiasm for the new portfolio, the response from fans around the world to the new Nokia range of Android smartphones has been humbling.

HMD is set out to capture the hearts and minds of the next generation of consumers.

Two-thirds of consumers buying a Nokia phone today are below the age of 35 years.

Four out of every five consumers are recommending a Nokia smartphone to their friends and family.

Over 150,000,000 visits have been welcomed to the Nokia.com/phones website since Jan 2017.

Set up on December 1, 2016, the company in its first year has shipped more than 70 million Nokia branded phones, scaled sales operations in over 80 countries with phone activations coming from 170 countries.

Currently, Nokia phones are sold at over 250,000 retail outlets across the world and more than 600 direct trade partners are committed to this next chapter of Nokia phones globally.

In financial year 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).

Since MWC 2017, the Finnish start-up has introduced 16 new devices and global partnerships with industry heavy weights such as Google and ZEISS, in addition to its long term strategic relationship with Nokia and FIH.

It would be recalled that at the Mobile World Congress 2018, held in Spain, HMD Global announced that it will be the lead global partner for Google’s flagship program for Android – Android One, committing a complete portfolio of Nokia smartphones to the Android One family.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.