Misfit Wearables secures $40M from Xiaomi and other Chinese firms

Misfit Wearables

Misfit Wearables has raised $40 million from Xiaomi, JD.com, and VC firms GGV Capital and Shunwei, Reuters is reporting.

As part of the deal, GGV partner Hans Tung will join Misfit’s board of directors, while Shunwei partner Tuck Koh will become a board observer. Both are Xiaomi investors.

The Daly City, California-based company, that is best known for its Shine activity tracker, will use the funds to further expand its presence and sales in China, and launch new wearable and home appliances.

Misfit is already the biggest-selling activity and sleep tracker in the world’s most populous nation, and the new funds could propel it to the new highs.

Xiaomi on its end has been entering other markets as well, including smart home appliances and mHealth with its recent investment in iHealth. However, this is the first time they are putting their money into a U.S. company, signaling their global ambitions. In the last quarter, Xiaomi emerged as the world’s third-largest smartphone manufacturer, trailing only Samsung and Apple.