Xiaomi Will Invest Around $1 Billion in Indian Startups!

Xiaomi and Shunwei Capital have already invested in around six Indian internet companies till now.


Xiaomi Investing $1 Billion In  India

After becoming the number one smartphone seller in India, Xiaomi is planning on making it big in the country. The Chinese is looking to invest $1 billion in over 100 Indian startups in the period of next 5 years to create an ecosystem of apps, internet and technology around their smartphone brand in India.

Xiaomi and its sister company Shunwei Capital, have already invested in around six Indian internet companies till now, which includes the likes of big names like Hungama and Krazy Bee.

The company will continue to invest in internet businesses such as content, financial technology, hyperlocal services which will include mobile phone repairs, manufacturing and retailing. The businesses in which Xiaomi will invest will indirectly help to increase the adoption of mobile internet and technology among the masses in India.

Xiaomi – Global Investment Model

Xiaomi has invested over $4 billion in their home country China in over 300 companies in the last four years.

The company will follow a same investment-model in India in the next five years, and will invest majorly in such internet companies which will help Xiaomi grow as a brand in the country.

The model was immensely successful in China, which helped the internet ecosystem to grow and pushed mobile internet adoption among masses. The company is planning to bring over all sorts of services and products from China and introduce them in India. That is the Xiaomi business model. Globally, the company has reached a huge scale in just seven years.

Xiaomi has been termed as one of the most valuable tech companies around the world. It is looking for investments from investors which will help them to expand the use of mobile internet and grow smartphone usage among customers.

Online Entertainment is the next big thing. Xiaomi is planning to provide content and other services to make its value-for-money phones more lucrative to the customers. They’re hoping it will differentiate their offerings from other close rivals like Samsung, Vivo, Oppo, Lenovo, Motorola and others.

Xiaomi is focusing on companies that will increase the use of apps, which will hit the frequency of usage of smartphones. As long as it accelerates the use of mobile internet, the company will keep picking minority stakes in such ventures.

Xiaomi’s Long Association With India

The Chinese brand Xiaomi entered the Indian market three years back in 2014, and presently accounts for a 23.5% share in the Indian smartphone market. Xiaomi currently shares the No. 1 spot with Samsung, who also has a 23.5% share in last the quarter.

The brand is available over 60 countries around the world, and last raised an equity capital at a valuation of $45 billion in late 2014. India is Xiaomi’s biggest global market outside China, where it sells a variety of products which includes headphones, speakers, watches, air purifiers and others. The company will introduce more products in India over the next two quarters.

The company isn’t planning to list its shares any time soon and will only go for an IPO when it feels comfortable, said CEO Lei Jun.

The company made losses back in 2015 owing to their expansion in global market and heavy investment in marketing. Xiaomi as a brand has come a long way in the country, and the future investments will definitely help the company grow further and penetrate deep in the market.

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