Chinese Phone and Appliance industry giant Xiaomi is looking forward to invest $1 billion in India within next five years. According to the recent market studies, India is the second best market for Xiaomi after China. Xiaomi already sales smartphones, televisions, purifiers and many other home appliances in India. Now the company is willing to fund around 100 Indian Start-ups, which will provide an advanced ecosystem for smartphone apps of the brand. Xiaomi and its partner company Shunwei Capital, staked investments in six Indian Internet companies before, Hungama and KrazyBee are among the beneficiaries. The company is willing to expand in the suitable businesses for mobile manufacturing and mobile repairing like hyper local services, content, financial technology in order to achieve growth in mobile internet adoption.
Xiaomi proudly stands as the third prominent Chinese Investor in India. Internet technology giants, Alibaba and Tencent are the first and second investors respectively. It has invested $4 billion in China to boost over 400 start-up plans and now investing in 100 Indian companies. The company is basically aiming to replicate top business modules of China in India. If the company succeed to achieve its target, it will be probably the most prolific investor in India. As the company is focusing on the investments that will expand the mobile internet usage and encourage customers to buy company smartphones, the company is initially interested in apps which are capable of increasing smartphone usage frequency i.e., the apps with better consumer engagement will be preferred. Xiaomi is hoping to increase the number of customer by providing them some entertainment and other fun finding content. It is already providing value for money smartphones and reached at the second position in Indian smartphone market. Around 13% of users from India preferred Xiaomi. Xiaomi has proven its brand reliability in terms of smartphone sales in India.
However Company’s Chief Executive Officer, Lei Jun declined to share the list of shareholders, joining the venture but he clearly stated that the company will go for an IPO if it feels comfortable to announce accordingly. Xiaomi is currently working on global expansion and it sales phones in 60 countries. Lei said that Xiaomi considers few factors while funding and forming a partnership and company is embracing at the world level in just seven years because of these alliances.