U.S. based wearable startup, Misfit has secured USD 40 million in series C funding led by Chinese smartphone manufacturer, Xiaomi with participation from e-commerce company JD.com Inc, and venture-capital firms GGV Capital & Shunwei.
As per ET report, post investment GGV partner Hans Tung will join Misfit’s board of directors and Shunwei partner Tuck Koh will become a board observer.
Including this round, Misfit has received a total capital of USD 63 million in 4 rounds from 13 investors. Misfit was founded in 2011 by Sonny Vu with John Sculley, the former CEO of Apple and Pepsi, and Sridhar Iyengar, co-founder and CTO of AgaMatrix, focused on developing wearable products with sensor technology for the health and fitness industry.
Xiaomi has made ties with different Chinese gadget makers through investments or partnerships. However, Misfit is the first US based company in which it has invested in.
Xiaomi itself had sold over 1 million of its wearable device ‘Mi band’ in a period of three months ending recently. Misfit has health tracking features similar to the Mi Band.
It’s interesting that Xiaomi is investing in a company which could potentially rival its own wearable range, is it possibly reserving itself an acquirer seat for the future? Let us know what you think in the comments below.