Xiaomi backs Dreame in $15m funding round

Smartphone maker Xiaomi backed Chinese vacuum company Dreame in a $15m funding round as part of its expansion into the consumer electronics arena.

Xiaomi’s plan for expanding its product range involves making deals and building relationships with hundreds of hardware and lifestyle startups.

Beijing-based Dreame, which produces premium hairdryers and vacuums, and is a rival for the UK’s Dyson, announced the completion of a Series B+ round led by IDG Capital earlier in the week.

Proceeds from the funding round will fuel Dreame’s marketing and sales efforts in Europe and North America and allow it to boost its research and development spend.

Dreame will sell Xiaomi-branded vacuums and will also operate its own label, a common setup between Xiaomi and its suppliers.

This is not the first investment from Xiaomi into a cleaning brand. Xiaomi also backed robot cleaner Roborock in 2014, which recently raised about $640m via an initial public listing on China’s new tech board in February.