A few days ago, LeEco reportedly fired over 85 per cent employees in India leading to speculation that it is winding up operations in the country
Amidst reports of massive lay-off in India, Chinese tech giant LeEco has secured about US$2.2 billion in fresh funding from two new investors, says a Reuters report citing stock market filings.
The new investment, raised from Tianjin Jiarui Huixin Corporate Management Company and property developer Sunac China Holdings, will be used for expansion, added the report.
The newly-raised funding will be invested in Leshi Internet Information, besides its smart internet TV subsidiary Leshi Zhixin as well as its film production subsidiary Le Vision Pictures.
The financing is a huge sigh of relief for LeEco which has been going through a cash crunch due to aggressive expansion plans. A few days ago, the company reportedly fired over 85 per cent employees in India, leading to speculations that it is winding up operations in the country. However, Alex Li, Group Vice President and COO of LeEco India, dismissed the speculations and said the firm is revamping the strategy in the country with an eye on profitability within a year.
Founded in 2014 by Jia Yueting, LeEco is a leading global Internet company which maintains ventures in consumer electronics, automobiles, film and other business. The firm features an ecosystem that spans film, TV, sports and live entertainment across an array of premium consumer electronics and lifestyle products – including mobile, TV, VR, automotive and smart bicycles. Its business units include Le Vision Pictures, Le Super TV, LeMobile, LeMusic, and LeSports.
Last November, LeEco secured US$600 million of funding from a dozen of local investors. The company had also replaced President of LeEco APAC Tin Mok by Anthony Gao.
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