Chinese smartphone company Xiaomi is moving towards its ambition of making smart homes by investing in home appliance firm Midea. Xiaomi Inc. has bought a 1.29% share of the Midea Group for around RMB 1.266 billion, which is roughly $205 million.
Midea is a Guangdong based company that produces a wide range of home appliances that include refrigerators, air conditioners, kitchen appliances to name a few. Midea unveiled its Smart Home Vision project in March, a project that is funded by around $2.5 billion in capital. The company recorded a $18.7 billion turnover in 2013.
A statement from Xiaomi read as follows, “The deal between Xiaomi Technology and Midea will see strategic cooperation between the two companies in smart home initiatives and electronic products.”
Xiaomi started off and is best known for its affordable smartphones. However, in the past few years it has started diversifying its product line by including products like a Mi Air Purifier, a smart TV, tablets, battery packs and a fitness band among other products. Xiaomi’s intention of “grooming 100 startups to help them become more than manufacturing companies” has been underlined by this investment and other past activities. There are arounf 25 companies that are now under the ambit of Xiaomi Inc.
It will be interesting to note how the future pans out for this latest venture.