Misfit Wearables raises $40M with an eye on Asia

Misfit, the creator of wearable fitness trackers Shine and Flash (and newly integrated sleep trackerBeddit) has raised $40 million in series C funding. A number of Chinese companies, including smartphone maker Xiaomi, online retailer JD.com, and investment firms GGV Capital and Shunwei, reportedly joined existing investors in supplying the funds.

Misfit CEO and founder Sonny Vu told news outlets that the company doesn’t exactly need the money -- it’s still going strong from a $15 million investment by Horizons Ventures back in November 2013 -- but is building partnerships that will help the company expand in China and throughout Asia, where its products have already taken off.

The deal bolsters Xiaomi’s investment in wearables, which the company has already begun pursuing on its own. Its Mi Band fitness tracker is a lower-priced competitor to Misfit’s Shine and Flash -- though as the names imply, Misfit’s products sport a more luxurious, jewellery-like aesthetic that Vu is confident will appeal to a different set of consumers. He told TechCrunch that the Mi Band’s launch actually spurred Misfit’s sales to a record single-day total.

Re/code reports that Vu dropped hints about plans for Misfit to introduce a wider variety of “advanced wearables” and move into smart home devices. The company will also be drawing on its new partnerships to expand and accelerate its hardware manufacturing in China.

Related: IoT Investments