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HMD Global gets $230 million funding injection from Google, Qualcomm and Nokia

Jasper Hart
August 12, 2020

Funding will go towards 5G carrier adoption in US and expansion into developing markets

HMD Global has secured $230 million (£176 million) in funding from partners including Google, Qualcomm and Nokia.

The Nokia licencee said the investment would advance its strategy in four key areas. These include accelerating the availability of accessible 5G smartphones, emphasising partnerships with US operators.

Additionally, HMD will focus on digital-first offerings and expanding presence in growing markets such as Brazil, Africa and India.

Finally, it will use the investment to move further into mobile services, following from the launch of its international data roaming service HD Connect and a new R&D centre in Finland.

HMD claimed to sell 70 million smartphones last year and 240 million to date since buying the Nokia mobile unit from Microsoft in 2016

According to CNBC, HMD’s revenue last year was €1.7 billion (£1.5 billion), down almost 30 per cent from €2.4 billion (£2.2 billion) in 2018, while losses grew more than 50 per cent to €295 million (£266 million).

However, CEO Florian Seiche said the company’s focus on online sales during the pandemic had allowed it to return to profitability in June.

“Since the very beginning, HMD Global has worked to build strong bonds with our strategic partners,” he said. “This additional investment further validates our long-term business strategy and is evidence of our collective mission to make modern mobile technology accessible to everyone.

“Security, reliability and dependability are the cornerstones of our offering and we will ensure we are using these funds to deliver the best experiences people have come to expect from a Nokia phone.”

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