The company which has dominated China's smartphone market is talking to investors and banks to roughly raise about USD 1.5 billion, which would be the largest investment (excluding IPO) raised by any Chinese company backed by venture capital.

"Xiaomi shipped 18 million smartphones in the third quarter, an increase of 18 percent from the previous quarter. For the first nine months, Xiaomi, whose name means "millet" in Chinese, shipped a total of 44 million units, Xiaomi founder and CEO Lei Jun said.

Xiaomi, currently the world's third-largest smartphone maker after Samsung and Apple, will use USD 1 billion to expand its own TV content for which they have hired Chen Tong,vamp its Internet video business.One of the investors is said to be DST Global, a London-based investment firm that focuses on Internet companies, Jiemian reported.

"Xiaomi, one of the large Chinese technology companies, valued at USD 50 billion would tap the IPO market next year," according to reports. The company is seen by investors as the most likely candidate to become the next "Chinese IT legend" after Alibaba, which completed a USD 25 billion IPO in the United States in September.

According to International Data Corporation, Xiaomi's global market share stood at 5.3 per cent, following Samsung's 23.8 per cent and Apple's 12 per cent in the third quarter of this year, bringing it on number 3 position onto the list of top 5 manufacturers for the first time.

Xiaomi was founded in April 2010 by Lei and his friends in Zhongguancun, Beijing's technology hub, which has been called China's Silicon Valley, their first smartphone debuted on August 16, 2011.