HMD Global, the maker of Nokia brand phones, announced that it has raised USD 100 million from multiple investors to help scale business operations and fund the company’s growth in its second year. This round of investment was led by Geneva-based Ginko Ventures, with participation from DMJ Asia Investment Opportunity and Wonderful Stars, a subsidiary of FIH Mobile.
HMD Global said the funding values the company at over USD 1 billion. The company plans this year to "aggressively expand" its portfolio of Nokia smartphones and "double down on expanding channel reach in strategic markets".
Started in December 2016 after taking over the Nokia brand licence from Microsoft, HMD Global is run by a number of former Nokia executives. The company shipped more than 70 million phones in its first year, with sales in over 80 countries and phone activations from 170 countries. HMD said Nokia phones are sold at over 250,000 retail outlets across the world and more than 600 direct trade partners.
In 2017, the group generated total revenue of EUR 1.8 billion and an operating loss of EUR 65 million.
FIH Mobile, part of Foxconn, has been a manufacturing partner of HMD Global from the beginning. The company confirmed that it acquired 44,720 convertible preferred shares at the subscription price of USD 253.35 each, for a total investment of USD 62 million in the latest funding round. Ginko also helped found HMD Global with an initial investment, and its MD Jean-Francois Baril, also a former Nokia executive, sits on the HMD Global board.
