As one of the top smartphone brands in China, vivo has been actively expanding its global presence in recent years. This involves establishing overseas subsidiaries, increasing overseas sales, and more importantly, obtaining financing from international investors. vivo’s parent company, BBK Electronics, has raised billions of dollars from prestigious global investment firms to fund vivo’s international growth. Understanding vivo’s major investors and their strategic significance provides insights into the global ambition of this Chinese tech firm.
vivo completed several major financing rounds from top international investors
According to public reports, vivo has completed several major financing rounds in recent years that brought onboard numerous high-profile global investors. In 2017, vivo received $4 billion in financing led by state-owned China Chengtong Holdings Group and several unspecified investors. This round propelled vivo’s valuation to over $20 billion. In 2018, vivo raised another $3 billion from investors including state-backed China Industrial Investment Fund, making it one of the largest single foreign investments in vivo at that time. Most notably, vivo obtained $7 billion in funding in 2021 from investors such as Warburg Pincus, General Atlantic and KKR & Co. This massive injection again catapulted vivo’s valuation to around $100 billion. With these successive mega funding rounds, vivo has amassed an impressive investor portfolio of top international private equity firms and sovereign wealth funds.
Strategic investors helped vivo expand globally
The strategic significance of these investors is to aid vivo’s global expansion. As one of the leading Chinese smartphone brands, vivo has already achieved tremendous success in the domestic market. However, compared to competitors like Xiaomi and OPPO, vivo was late to enter overseas markets. The fresh injection of capital from renowned investors provided vivo with the warchest necessary for large-scale international expansion. For example, vivo set up a new subsidiary in India after raising $7 billion in 2021. It has quickly gained market share in India and become a top 3 smartphone brand. vivo also used the new capital to grow its business in other emerging markets such as Southeast Asia, Latin America and Middle East. Additionally, having renowned investors lent credibility to vivo’s global ambition. Their confidence in vivo’s growth potential convinced other parties that vivo is serious about becoming a global technology leader.
International investors diversified vivo’s funding sources
Besides facilitating vivo’s global footprint, these high-profile international investors also diversified vivo’s funding sources beyond mainland China. Previously, the majority of vivo’s capital came from Chinese state-owned entities or BBK Electronics’ own profits. However, the influx of foreign capital gave vivo greater financial flexibility. It reduced vivo’s dependence on state support or BBK Electronics. This was important because the parent company also needs to fund other subsidiaries like OPPO and OnePlus. Furthermore, having renowned foreign investors on board signaled vivo’s attractiveness to global capital markets. It laid the foundation for vivo to directly tap international capital markets in the future through potential overseas IPOs. An diversified investor base will support vivo’s long-term growth trajectory.
In summary, vivo has succeeded in raising billions of dollars from top international investors in recent years. These strategic investors provided capital to support vivo’s global expansion and lent credibility to its international ambition. Their involvement also diversified vivo’s funding sources beyond mainland China. vivo’s high-profile investors highlight its appeal to global capital and will empower its future growth.