Nokia phones maker HMD Global raises $230 million, eyes 5G boom

The investment will help HMD Global expand its presence in key markets such as India and Brazil as well as transition into a mobile service provider.

HMD Global raises $230 million investment from strategic partners (HT Photo)

HMD Global, the Finnish company which holds rights to the Nokia brand for mobile phones, has announced raising $230 million investment from its strategic partners. The investment is said to be led by the likes of Google, Qualcomm, and Nokia.

HMD Global said that the investment will help the company accelerate its plans to roll out 5G smartphones across the world. The company also highlighted a stronger partnership with US carriers in the future. Another major focus will be expanding its presence in key growth markets such as Brazil, Africa, and India.

HMD Global said that the company is now looking to transition into a holistic mobile service provider from a hardware company. The roadmap also includes delivering “digital-first offerings” in a new “post-Covid reality.”

It also highlighted some of its digital-first initiatives such as international data roaming service. The company had also acquired Valona Labs to bolster its mobile cybersecurity capabilities.

“Since the very beginning, HMD Global has worked to build strong bonds with our strategic partners. 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," said Florian Seiche, Chief Executive Officer, HMD Global.

"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. As the only major European smartphone manufacturer, we remain true to our Finnish roots and the hallmarks that our customers trust Nokia phones to be synonymous with. With the support of our heavyweight partners, I am truly excited for the next chapter of Nokia phones,” Seiche added.

HMD Global: An overview

Headquartered in Espoo, Finland, HMD Global Oy began its operations in 2016. The company touts itself as the “home for Nokia phone.” Since its debut, HMD Global has expanded to 91 markets across eight regions. So far, it has sold more than 240 million phones.

The company had last raised investment in 2018. Then valued at $1 billion, HMD Global had garnered $100 million. The investment was led by the likes of Geneva-based, Ginko Ventures via Alpha Ginko Ltd. with participation from DMJ Asia Investment Opportunity Limited and Wonderful Stars Pte. Ltd., a subsidiary of FIH Mobile Ltd.