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Xiaomi reportedly set to exceed 2017 revenue targets as it preps for IPO

Tim Maytom

Chinese smartphone manufacturer Xiaomi has reportedly told bankers that it will exceed its annual revenue target for 2017 by as much as 18 per cent, a significant recovery for the firm which has seen sales slump in recent years.

The company underwent an overhaul of its business earlier this year, and many industry observers are expecting it to undergo an IPO next year.

According to Reuters, Xiaomi has been hearing bank pitches for what could be next year's biggest tech floatation on the stock market, and has disclosed that it expects revenues of between $17bn - $18bn (£12.7bn - £13.5bn) this year, with a net profit of at least $1bn. In 2018, profits could double to $2bn.

Sources with knowledge of the discussions told Reuters that calculations for the 2017 financials took into account data on operating costs that had been provided by the company, and with profits expected to keep climbing until at least 2019, one source called a $100bn valuation at IPO "reasonable".

While a spokesperson at Xiaomi confirmed that it has exceeded its annual revenue goal of approximately $15bn, the firm hasn't released any more detailed financial information, and has not commented on the expected IPO.

In a 2014 funding round, Xiaomi was valued at $46bn and was briefly the world's most valuable startup. However, the company saw sales stagnate over the next two years as it focused on expanding into new markets and weakened its position in its home region of China.

Following a business overhaul, the firm has branched out into selling accessories and home appliances as well as smartphones, and recently overtook Apple to become China's fourth-largest smartphone vendor. The company has also re-launched sales in dozens of countries throughout Asia and the Middle East.