Finland based start-up, HMD Global – the home of Nokia phones has raised additional USD 100 million to scale business operations and fund the company’s growth in its second year.
The $100m round was 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 the latest round of funding, HMD Global’s current market valuation exceeds USD 1 billion, giving it a unicorn status. HMD Global will be making strategic investments in scaling its fast-growing business operations. The firm will use the funds to aggressively expand its portfolio of Nokia smartphones and double down on expanding channel reach in strategic markets.
According to Florian Seiche, CEO, HMD Global, “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.”
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. Today, 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).
Jean-Francois Baril, Ginko Ventures Managing Director and Founder, HMD Board member said, “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.”
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. At MWC 2018, 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.