Nokia maker raises N36 billion for next growth phase

Nokia maker raises N36 billion for next growth phase

Nokia maker raises N36 billion for next growth phase

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HMD Global, makers of Nokia, says it has raised extra N36 billion from multiple investors to scale business operations and fund the company’s growth in its second year.

The Finland based Nokia manufacturer said that this round of investment 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.

HMD Global further said that it has a unicorn status as the company’s existing market valuation exceeds $1 billion with the latest round of funding.

The company disclosed that it will be making strategic investments in scaling its fast-growing business operations adding that in 2018, it plans to zealously 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.

“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.”

Nokia 8110
The Nokia 8110 smartphone

According to Florian Seiche, the 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.”

HMD recalled that in 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 ($2.13 billion) along with an operational loss of EUR 65 million ($77 million).

According to the company, fans around the globe have shown great passion, engagement, and enthusiasm for the new Nokia range of Android smartphones.

“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”, the company noted.

Expressing delight, Jean-Francois Baril, Ginko Ventures Managing Director and Founder, HMD Board member, said that Ginko is 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”, Jean stated.

HMD Global has 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.

HMD is the home of Nokia branded smartphones and feature phones targeted at a range of consumers and price points and holder of exclusive licence for Nokia brand for phones and tablets.

Ginko Ventures is a venture capital Firm targeting technologies, devices and solutions that will improve the way people work, play and live. The venture majorly targets investments in European companies whose technologies have the potential to rapidly access global markets.

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