HMD, a manufacturer of phones under the Nokia brand, says in a statement that it has raised $ 230 million in new funding.

According to CNBC, funding has been sought from Google, Qualcomm and Nokia, among others. The funds will be invested primarily in the manufacture of new 5g-compatible phones in conjunction with Qualcomm.

“This is one of the key areas for us where we want to ensure that 5g is available in the mid-range as soon as possible,” says Florian Seiche, CEO of HMD, to Bloomberg news agency.

Nokia-branded 5g phones are scheduled to hit the market in the first half of next year.

In addition, HMD intends to use the funds for market investments in Brazil, Africa and India, as well as for the development of various software solutions.

HMD has been manufacturing Nokia-branded phones since 2016, when the company, along with Taiwanese Foxconn, acquired Nokia's phone business from Microsoft. Under the agreement, Foxconn will manufacture the phones designed by HMD and Nokia will receive license fees based on sales of the phones.

HMD told CNBC that the company’s net sales in 2019 were € 1.7 billion, down nearly 30 percent from the previous year. According to the company, this was mainly due to weaker market activity as HMD did not have enough capital to make the required investments.

HMD Global's result for the whole of last year was a loss of EUR 295 million. According to Bloomberg news agency, HMD has said the company made a profit in the last quarter of last year.

HMD’s largest owner is the private equity fund Smart Connect, led by former Nokia CEO Jean-Francois Baril.