LeEco Secures $600 Million in New Funding for Its Global, Electric Car Businesses

Chinese handset maker LeEco Tuesday said it has secured a $600 million funding from major Chinese institutional investors and has appointed Anthony Gao its president for Asia-Pacific region.

"LeEco has secured $600 million (roughly Rs. 4,067 crores) of funding from major Chinese institutional investors today. The first half of the funding will be transferred to LeEco within this November and will support LeEco Global and LeEco's electric vehicle business," LeEco said in a statement.

It added that the company is undergoing a series of strategic and organisational upgrades to focus on sustainable growth and acquisition of high-value users.

Last week, LeEco Co-founder and Chairman YT Jia had written to employees admitting that his technology empire is running out of cash and pledged to slash his income to CNY 1 (15 cents).

He had also said the company is keen on expanding its ecosystems around the world with presence in Hong Kong, India, Russia and the US, where India is "on the priority list".

Besides, Gao - who will also head the company's Hong Kong unit - will be responsible for operational management and meeting various business targets. He will report directly to Jia.

Before LeEco, Gao spent 17 years in Huawei in various senior executive positions, including CEO of Huawei Device in China, President of Global Sales and Technical Service Department, and President of Global Strategy and Marketing Department.

"Although there are doubts surrounding LeEco, true innovative entrepreneurs can see the investment value of LeEco and its enormous growth potential in future," LeEco Co-founder and Vice-Chairman Hank Liu Hong said.