The widely renowned consumer-drone manufacturer DJI is planning to go public. The company seeks $500 million dollars in investment which will lead to a $15 billion-dollar valuation. The plan to expand its business outside the consumer drones market might be one of the reasons why the Chinese manufacturer is looking to go from private to public. Read our article and find out more about this issue.
Founded in 2006 by Frank Wang
The growth of Dà-Jiāng Innovations is astonishing. The Chinese company was the one that benefited the most from the on-growing trend of consumer Unmanned Aerial Vehicles, popularly known as ‘drones’. The company started unofficially in 2005, when Hong Kong University of Science and Technology prized HK$18,000 ($2,300 dollars) to Frank Wang a young student and entrepreneur. The scholarship was aimed to drone research and development. Something Mr. Wang did like no other before. Thus, in 2006 Mr. Wang founded DJI company and introduced DJI Phantom 1 to the market. The company quickly grew, rapidly becoming one of the most recognized names in the consumer-drone industry. Frank combined groundbreaking features and specifications with a beautiful design and great hardware at a competitive price. Some of the best Phantom line drones by DJI can already be bought for less than $500.
Global Market Share and Profit
It’s common knowledge among drone hobbyists, and even casual consumers, that DJI is the biggest consumer-drone company in the market. In fact, the company has a 70% global market share, therefore being the number 1 drone seller in the world. In 2017 alone, the company reportedly made $2.7 billion (overall, not only from drone sales). According to some of the best drone websites, DJI is the most popular brand among Youtubers and other influencers. This has sparked a new craze around portable drones focused on camera quality and ease of use.
But it’s not just among hobbyists and casual consumers that DJI has a big impact on. In fact, the company holds 70% of the agricultural drone market thanks to the models Matrice and MG. However, the manufacturer is yet to make a profit in this sector (according to latest info).
Investment and Future IPO
At the moment DJI is seeking $500 million in investment ahead of a planned stock market debut. DJI has plans to expand its business to other sectors such as agriculture, energy, construction and infrastructure inspection. At the moment the largest source of income is without a doubt consumer drones. However, with the rapid development of UAVs DJI looks to start competing in other sectors as soon as possible and establish itself as the number 1 drone company in the world.
What is Your Opinion?
Hello fellow drone lover! Do you own or are considering buying a DJI product? What do you think of the company’s potential IPO? Do you think it will benefit or harm the brand going from private to public? Leave a comment down below and join the debate! We look forward to read your opinion.
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