Chinese electronics maker LeEco which is more popular and fastest growing organization in China has now in financial crisis. Earlier this year LeEco has entered into Indian market to do an earth shattering business like it did in China, but unfortunately the company run out of cash so quickly. The organization has recently joined hands for “Make in India” to deliver cheap smartphones locally.
In a mail to its employees, the company has mentioned the problems and how it went into financial crisis. Among many Chinese smartphone producers Xiaomi and LeEco stands in top positions to make quality products at an affordable price. LeEco began services as online concept platform and soon expanded to smartphones, televisions, and even a smart car.
Speaking in this, LeEco founder and Chairman JiaYueting said “We concentrate on developing the organization, and the development is also moving too fast. We blindly raced ahead for launching products too fast without keeping investment in the mind. Finally, we are in financial crisis.”
About LeEco’s Fundings
Founded in 2004, the organization received its first money of $17.5 million in August 2008. In August 2013, the company upturned another $32.5 million in Series A funding. Finally, LeEco received $55.4 million in funding in September 2014 from CHT capital.
However, LeEco exposed its first electric sports car, ‘LeSee’ in China for which it raised $1.1 billion this year.
Will LeEco get out from Financial Crunch?
An email from the LeEco chairman puts the employees in a dilemma about their future. The letter didn’t show a positive sign and the future of company could be doubtful if no depositor invests in it.
JiaYueting also stated that they are facing a lot of troubles to raise funds. He also mentioned that he would cut off his salary to 1 Yuan. As we know CEOs across the globe have recognized for reducing their salaries to $1, but not only because of a cash crunch and this is a bold move as well.