HMD, vendor of Nokia phones, raises $100 million to expand product portfolio, sign partners

The vendor of Nokia-branded phones and Finland based start-up, HMD Global, has raised additional US $100 million from multiple investors to scale business operations and fund the company’s growth in its second year. The round of investment has been led by Geneva-based, Ginko Ventures via Alpha Ginko with participation from DMJ Asia Investment Opportunity and Wonderful Stars Pte, a subsidiary of FIH Mobile.

With the latest round of funding, HMD Global’s current market valuation exceeds US $1 billion, giving it a unicorn status. HMD Global will be making strategic investments in scaling its fast-growing business operations. In 2018, 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.

Florian Seiche, CEO, HMD Global, said, “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, HMD 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 via more than 600 direct trade partners and distributors. In the 2017 financial year, HMD Global posted a total revenue of EUR 1.8 billion (US $2.13 billion) along with an operational loss of EUR 65 million (US $77 million).

Two-thirds of consumers buying a Nokia phone today are below the age of 35 years while 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 phones website since Jan 2017.

Jean-Francois Baril, Ginko Ventures MD 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, HMD 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.

Headquartered in Espoo, Finland, HMD Global Oy is the home of Nokia phones. HMD is the manufacturer of Nokia branded smartphones and feature phones targeted at a range of consumers and price points. With a commitment to innovation and quality, HMD is the exclusive licensee of the Nokia brand for phones and tablets.

Founded in 2015, Ginko Ventures is a venture capital firm targeting technologies, devices and solutions that will improve the way people work, play and live. It primarily focus on investments in European companies whose technologies have the potential to rapidly access global markets with a mission is to enable sustainable partnership between industry leaders and amazing entrepreneurs for disruptive innovations and superior value creation.

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