HMD Global, the Finnish company that manufactures Nokia phones, has raised $230m funding in order to expand its efforts in several areas, including 5G.
The funding round, which has seen investment from what HMD Global calls “some its top global strategic partners”, including Google, Qualcomm and Nokia Technologies, is believed to be one of the largest of its kind in Europe this year.
The company says that the investment will be used to boost its efforts in four areas.
First is an expansion of its 5G handsets offering, with a particular focus on consumer accessibility in the US. This suggests it intends to drive development of handsets in the lower end of the 5G market, which is currently dominated by premium products.
In addition to the US, it also plans to expand its presence in “key growth markets”, citing recent efforts in Brazil, Africa and India as examples.
However, the company also says it will “further transition to digital-first offerings as part of a new post-Covid reality”, which it has not gone into details of, but may relate to its fourth focus area, developing its position “beyond just hardware and into a holistic mobile service provider”.
So far, efforts in this area have included the launch of an international data roaming services, the establishment of a dedicated research and development centre and the expansion of cybersecurity capabilities, which it has achieved through the acquisition of Valona Labs.
HMD Global sets sights high for Nokia phones with funding
The funding is ultimately designed to raise the position of HMD Global in the global handset market, as the sole major manufacturer in Europe.
“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, CEO of 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.”