China’s Xiaomi reportedly failed to hit a $1 billion target for revenue from internet services, adding to its recent handset woes, as it grapples with slowing economic growth in the country.

According to an internal document seen by Reuters, the company, China’s most valuable start-up at $45 billion, missed the target, putting its valuation under increasing threat. The missed target is despite internet services revenue actually surging 150 per cent to CNY3.71 billion ($563.94 million), from CNY1.48 billion a year earlier, the document showed.

A Xiaomi spokesperson reportedly declined to comment on revenue for the year.

Earlier this month, it was revealed the company also failed with its 2015 handset shipment target of 80 million, by 12 percent, as it struggles to maintain early growth since its launch in 2010.

With China’s economy “growing” at its slowest pace for a quarter of a century, the country’s smartphone market is becoming saturated. Earlier today, Apple also reported slowing growth of iPhone handset shipments, amid difficult economic conditions across the world, as well as falls in commodity prices and weakening currencies.

Amid Xiaomi’s struggles, research firm IDC notes the outlook for China is dramatically changing from past forecasts, which on average doubled in size each year from 2011 to 2013 when it was in its boom period.

This year, it predicts China’s smartphone market will grow 1-2 per cent.

“The large growth rates that we saw in years past are definitely much different now,” Bryan Ma, analyst at IDC told Reuters. “In theory, it could slip below zero this year, but either way, it’s relatively flat.”

Xiaomi aggressively targeted international expansion last year, in a bid to curb its reliance on its home market.

Among its targets for growth include India, where it recently began to produce handsets locally. It also launched sales in Brazil, and is rumoured to be preparing a roll-out in Africa and the Middle East later this year.