Carl Pei's Nothing bags $70 million funding to expand to new products

Nothing's wireless earphones.

Nothing, the consumer technology startup of OnePlus co-founder Carl Pei, has raised $70 million in Series B funding co-led by EQT Ventures and C Ventures.

The round also saw participation from existing investors such as Alphabet's venture capital arm GV, iPod inventor Tony Fadell's investment and advisory firm Future Shape and new investors such as Animoca Brands and Gaorong Capital. This brings the company's total fundraise to $144 million to date, including the $1.5 million community funding round last year.

Nothing plans to use the capital raised to foray into new product categories in collaboration with Qualcomm Technologies and its Snapdragon platform, which was first announced in October last year. The startup said it will disclose its product roadmap for the year 2022 on March 23.

The proceeds will also be used to grow its operations at its new London Design Hub, led by former Dyson design head Adam Bates.

“With this round of financing, we have the fuel to realise the next phase of our vision of a seamless digital future,” said Pei.

Started in 2020, Nothing plans to develop a series of smart, connected consumer technology products and had roped in Swedish consumer electronics firm Teenage Engineering as a founding partner of the company in February 2021. Teenage Engineering is famous for developing a range of audio products that have a strong emphasis on design.

The startup's first product - a pair of wireless earphones called Ear (1) - was released in August last year. It claims to have shipped over 400,000 units until now.

A smartphone is also in the works, that could be unveiled in the forthcoming future, according to TechCrunch. The firm had earlier acquired the trademarks of Android creator Andy Rubin's now-defunct smartphone brand Essential, which shut down in early 2020.

India is among the few markets where Nothing has local operations, having appointed former Samsung executive Manu Sharma as vice-president and general manager of its local unit in February last year. The London-headquartered company has also partnered with Walmart-owned e-commerce marketplace Flipkart for its foray into the country in June last year.

"We’re delighted to be backing Nothing in this new funding round. For too long, the consumer tech industry has been dominated by the same players, offering customers uninspiring and staid products. Nothing represents a bright, new future – combining design with carbon-neutrality and a forward-thinking approach to help us all re-imagine how we use and interact with our tech," said Ted Persson, Partner at EQT Ventures.

Nothing also counts Cred founder Kunal Shah, prominent filmmaker and producer Karan Johar, former cricketer Yuvraj Singh, fashion designer Sabyasachi Mukherjee, digital content creator Ranveer Allahbadia, and singer Jasleen Royal among its investors.

Among its global backers include Twitch co-founder Kevin Lin, Reddit CEO Steve Huffman, Swedish House Mafia members Axel Christofer Hedfors and Sebastian Ingrosso, PCH founder and CEO Liam Casey, renowned YouTuber Casey Neistat, Product Hunt CEO Josh Buckley, and Web Summit founder Paddy Cosgrave.