Carl Pei's smartphone startup Nothing raises $96 million from investors for U.S. expansion

Nothing, the hardware startup from OnePlus co-founder Carl Pei, raised $96 cardinal from investors successful a caller circular of backing to substance an enlargement of its concern into the U.S. and the motorboat of its caller smartphone.

The London-based institution raised the caller currency successful an concern circular led by European task superior steadfast Highland Europe, with existing investors GV, EQT Ventures, and C Capital besides investing, on with location euphony supergroup Swedish House Mafia.

Tony Zappala, a spouse astatine Highland Europe, led the circular and volition beryllium joining Nothing's board, the institution announced.

Nothing said it has present launched much than 1.5 cardinal products to date. With different $96 cardinal successful the bank, the institution plans to standard its operations further truthful that it tin nutrient much products and ramp up sales.

Nothing has launched 3 products to day — the Ear 1, Ear 2 and Ear Stick wireless earbuds, and the Nothing Phone, its archetypal smartphone. It is readying to motorboat a caller smartphone, the Phone 2, connected July 11, which volition travel with a processor from U.S. spot institution Qualcomm.

The funds volition beryllium utilized to put successful the company's enlargement into the U.S. market, which would enactment it successful much nonstop contention with U.S. tech elephantine Apple. Pei archetypal disclosed plans to grow its concern successful the U.S. successful December 2022, successful an exclusive interview with CNBC.

In March, Pei told CNBC the enlargement is already getting disconnected to a bully start. The steadfast has a squad up and moving there, and feels "confident" it volition marque headway successful launching its archetypal telephone successful the U.S. marketplace this year.

"The merchandise is progressing precise well," Pei said astatine the time, connected the sidelines of Mobile World Congress successful Barcelona. "In twelvemonth one, we hardly had immoderate engineers. We had similar 3 engineers. And the mill did each the work. So determination were a batch of things that we couldn't realize."

At the aforesaid time, Nothing has had to chopped costs wherever it tin to guarantee its endurance successful the existent economical environment.

Pei said the institution has been reviewing employees' show and letting immoderate idiosyncratic staffers spell connected a case-by-case ground erstwhile unhappy with however they've performed versus its expectations.

"It's precise hard," Pei said astatine the time. "Hardware is hard. The macro is hard. Our manufacture is hard."

"So if there's radical who conscionable privation to beryllium a portion of a chill institution and bask tech institution perks it's not the close place. It's not a spot to travel if you conscionable privation to archer your friends you're moving astatine a chill company. It's truly if you privation to physique thing unneurotic with the remainder of us, it's a truly bully opportunity."

It's been a pugnacious situation for startups to rise capital, arsenic task capitalists person tightened their belts successful effect to rising ostentation and a souring outlook from investors erstwhile it comes to technology

That's arsenic rising inflation, higher involvement rates, and a softer system person led to thing of a reset successful tech valuations.

Meanwhile, smartphone income person been nether pressure, with planetary shipments falling 14% year-over-year successful the archetypal 4th of 2023, according to Counterpoint Research.

WATCH: 'Sea of sameness': Are smartphone makers retired of ideas?