The Swedish company, which outsources all of its manufacturing, raised the funds from new investors Viking Venture and Creandum, as well as existing backers Ferd Venture, Industrifonden, Innovacom, Nordic Venture Partners and Teknoinvest.

Nanoradio will use the money to drive sales for its flagship product, Always On WiFi, which the company claims cuts energy consumption and increases standby and talk time in wifi-enabled mobile phones, thus reducing the need to turn off wifi when not in use to conserve battery life.

There are also plans for a new line of products, though Nanoradio’s president and CEO Tord Wingren says the company will continue to focus on providing wifi technology to mobile phone makers.

Martin Hauge, general partner at Creandum, calls Nanoradio ‘probably the most exciting semiconductor company in the Nordic region’, adding that the market for Always On WiFi ‘is enormous, with hundreds of millions of wifi devices, including mobile phones, that may benefit from Nanoradio’s technology’.