Xiaomi looking to invest $1 billion in Indian startups

Rodiano Bonacci
Novembre 20, 2017

In a bid to create an ecosystem for its mobile applications, Chinese smartphone giant Xiaomi is looking to invest Dollars 1 billion in 100 Indian startups over a period of five years, according to a report by the Mint.

Xiaomi and its investment arm Shunwei Capital will invest in businesses like content, financial technology, hyperlocal services, besides investing in mobile phone repairs and manufacturing to increase the user base for mobile internet in India.

Xiaomi has invested over $4 billion in their home country China in over 300 companies in the last four years. We will basically replicate the most successful ecosystem business model of China in India. We will have all types of services and products and integrate them. "That is Xiaomi's business model", said Lei. 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. Unlike Alibaba and Tencent, Xiaomi is only looking for investments that will expand mobile internet usage and hook customers to its phones in a smartphone market that is defined by fickleness among shoppers in constant lookout for the next new thing.

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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 entered the Indian market in partnership with Flipkart which is the country's biggest leading online retailer.

According to the latest International Data Corporation's (IDC) mobile data report, Xiaomi emerged as the fastest growing smartphone brand in India in the September quarter driven by the festive season and surging demand. The company is already selling its phones in around 60 countries and had last raised equity capital at a valuation of Dollars 40 billion in 2014. India is the company's biggest market outside of China, where it sells a variety of products including televisions, smartwatches, air purifiers, water 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. "We haven't made any losses except in 2015 when we lost a little bit of money because of working on global expansion".

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