Smartphone vendor HMD Global raised $100 million in its latest funding round, cash earmarked to grow the Nokia device brand with an ultimate aim of reclaiming its position as one of the world’s leading manufacturers.
Among the investors was Wonderful Stars, a subsidiary of Hon Hai Precision (Foxconn)-owned FIH Mobile, which will hold a direct stake of 6 per cent of the company’s issued shares once HMD Global’s pending transactions are complete.
Other buyers include investment companies Ginko Ventures (through Alpha Ginko) and DMJ Asia Investment Opportunity.
Since HMD Global took on the Nokia handset brand in 2016 – signing a licence enabling it to use the name until 2024 – it rapidly expanded the Nokia device portfolio and made significant progress in revitalising the ailing brand. It is also the world’s leading provider of feature phones.
Nokia devices are available in 250,000 retail outlets around the world and through 600 direct partners, an FIH Mobile filing to the Hong Kong stock exchange revealed.
FIH Mobile said buying the stake would allow it to expand its existing relationship with HMD Global, which currently includes device manufacture.
In its filing, the company added the closer relationship to HMD Global would: “enable the parties to collaborate even stronger [sic] to enhance future research and development and manufacturing capabilities for the Nokia-branded phone business, enabling both [HMD Global and Wonderful Stars] to achieve the common objective of building a globally successful business.”