Smartphone startup Nothing announced today that it closed a Series C funding round of $200 million. The investment was led by the firm Tiger Global and values the consumer electronics company at $1.3 billion.
Other investors in this round included existing backers such as GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry. The company, founded by former OnePlus co-founder Carl Pei, also received new strategic backing from Nikhil Kamath and Qualcomm Ventures. This new funding brings Nothing’s total funding to over $450 million. The company also stated it will soon open another community funding round, having previously raised $11.5 million from its community.
Matt Watcher, a partner at Tiger Global, expressed excitement about the partnership. He stated that Carl and the team at Nothing are reimagining hardware and software with an AI overlay to position their products for the next era of personal technology.
Nothing has bet on design differentiation, a strategy that has served the startup well. The company reports it achieved over $1 billion in total sales earlier this year. An early investor confirmed they are happy with the company’s growth trajectory and its road to profitability. To date, the company has built a supply chain and infrastructure that allows it to launch and ship products worldwide within months.
Notably, its recently launched Phone (3) is only its second handset to receive general distribution in the U.S. The device showcases the company’s signature transparent design aesthetic and unique user interface.
According to analytics firm IDC, Nothing has less than 1% market share globally. However, in its biggest market, India, it has managed to capture a 2% share. The company has shipped 5.1 million units to date, with over a million units shipped in just the second quarter of 2025. IDC noted that its global expansion has been slow, as 80% of its units are still sold in Asia.
Founder Carl Pei has said he wants to target the next generation of users who seek alternatives beyond incumbent brands. He believes the company’s approach to differentiating its brand and products resonates with consumers interested in tech, creativity, and design.
Highland Europe partner Tony Zappalà, an existing investor, said the company has delivered on its promises and has significant room to grow in the large consumer electronics industry. He noted that being a recognized name provides advantages in attracting talent and building supply chain relationships.
The company’s vision is to build an operating system with AI and personalization features that extend beyond smartphones. So far, only a few AI features have been seen, such as Essential Search, a smart function that helps users find information across their device. To lead its AI services efforts, Nothing has hired Sélim Benayat, a former executive from Linktree and founder of Bento.
Zappalà commented that the challenge in building an effective AI-first experience is both a customer experience and a trust issue, noting that AI features need to reach a stage where users do not feel the need to double-check the output. Companies like Apple have also struggled to integrate AI features effectively. For Nothing, the difficulty lies in finding the right balance between newness and helpfulness.
Pei believes that smartphones remain the best way to deliver AI and will be the dominant form factor for all consumer AI applications for at least the next three to five years. With this new funding, the company plans to launch an AI-first device next year. This move comes as the AI hardware space has proven challenging, with startups like Humane struggling and Rabbit working to improve its device after a difficult first iteration.