China, October 15, 2014: Beijing-based Chinese smart phone maker Xiaomi has agreed to invest RMB84 million (US$14 million) in Shenzhen-based GPS mapping technology firm Careland Information System, according to a company announcement. Careland is a provider of GPS maps, navigation software and car networking services.
Careland says it will use the proceeds to further develop its GPS technology and strengthen its mobile platform services. Xiaomi's investment in Careland follows the footsteps of Chinese Internet services giants Tencent Holdings and Alibaba Group.
Xiaomi, which will likely integrate Careland’s services into its devices faces strong competition from Baidu, Alibaba and Tencent, which account for the majority of China’s mobile map market.
Xiaomi will subscribe to seven million shares at RMB12 apiece. Careland was listed on the Growth Enterprises Market in Shenzhen in 2012. Other terms of the deal were not disclosed.
Source: Careland Information System