Chinese smartphone manufacturer Xiaomi is reportedly looking to rake in more investors and funding as they're looking for $40 billion to establish the company as a valuable and private technology firm.

Talks are still in their early stages, but after earning $10 billion in valuation on August 2013 during its last round of funding, Xiaomi is seeking to gain more investors, such as DST Systems Inc which participated back in August.

Xiaomi's goal is to reach $40 billion and more in valuation, as that will put them ahead of Sony Corp. and Lenovo Group, who were valued at $21 billion and $16 billion respectively. A move like this would name them the most valuable tech firm in the world.

Despite facing allegations of being an Apple copycat, Xiaomi outsells Apple Inc. in China and was briefly ranked as the third world's largest smartphone manufacturer. However, Xiaomi dropped down to fourth behind Lenovo after the latter's acquisition of Motorola Mobility.

Xiaomi also has the backing of numerous investors, such as Singapore's Temasek Holdings Pte, Qiming Venture Partners, Qualcomm Ventures, IDG Capital and Morningside Venture Capital. It allows them more funding to create and sell inexpensive phones with specifications and hardware that are up to par with the more expensive devices offered by competitors.

"They have a cost advantage over many of the larger vendors because of their online sales model," James Roy, a Shanghai-based analyst for China Market Research Group, said when asked to comment on Xiaomi's success, "It's been a really dramatic rise for Xiaomi in the past four years from nothing."

Xiaomi is based in Beijing and unlike its competitors it has numerous opportunities to expand more than it already has. Xiaomi operates in only a few countries, including China and India, and has yet to expand to the Western market, leaving a lot more resources untapped.

Xiaomi has also began branching out from phones into other consumer electronics. They revealed the MiBox, a television that can connect to the Internet, and their first tablet computer, the Mi Pad. The company has also stated that they are currently making steps to start up in Brazil.