Phone Startup Nothing Raises Funding, Crosses $1 Billion in Lifetime Sales

(Bloomberg) — Nothing, a smartphone maker backed by Google’s venture arm and iPod creator Tony Fadell, is seeking to raise at least $100 million in funding to expand its operations, according to people with knowledge of the matter.

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The London-based startup, which launched in 2021 to fanfare from technology enthusiasts, kicked off the Series C round in recent days, said the people, who asked not to be identified because the plans haven’t been announced.

Several newcomers have tried to challenge Apple Inc.’s iPhone with new devices, but few outside of China have come close to rivaling the well-capitalized market leaders. Nothing previously raised about $100 million in 2023.

Nothing has gained fans with the unique design of its smartphones, which feature a transparent back. The startup is run by Carl Pei, one of the creators of OnePlus, a popular China-based phone maker. Nothing sells phones ranging from $250 to $700, as well as several different earbuds and a smartwatch.

In 2024, Nothing doubled its annual revenue to more than $500 million and recently crossed $1 billion in lifetime sales, the people said. It has also told investors that its margins have improved from a year ago and that it has sold 7 million units across all product categories to date.

A Nothing spokesperson declined to comment.

Though customers in the US can buy Nothing devices, the company primarily sells its phones overseas. Nothing’s biggest market is India, followed by Germany and the UK, the people said. The top market for the company’s audio gear is the US, followed by the UK, Germany and Japan.

Nothing is focused on ramping up sales outside the US this year, but plans to make a bigger push into the American market in 2026. It’s also exploring an expansion into additional product categories. The company has about 600 employees and manufactures devices in China and India.

Like most non-Apple smartphones, the Nothing devices run the Android operating system. The startup is working on overhauling its software to add more artificial intelligence features, with the enhancements set to launch in the first half of the year.