Xiaomi To Pump Up To Rs 7,000 Crore In Indian Startups
Chinese smartphone major Xiaomi today said it will invest Rs 6,000-7,000 crore in around 100 startups in India over the next five years to strengthen its hardware and software ecosystem.
“Till 2017 the net investment of the company was Rs 3,000 crore. In the next five years we will invest Rs 6,000 crore to Rs 7,000 crore in around 100 startups in India,” Manu Kumar Jain, Managing Director and Vice-President of Xiaomi India, said. The smartphone maker is looking to invest more on the mobile software side, that also help its hardware ecosystem.
Xiaomi is confident that it will continue to dominate the Indian market. And the new investment will further strengthen the ecosystem, Jain said. Till 2017, Xiaomi had invested in 10 startups.
It wants to expand beyond smartphones. In its first Indian flagship experience store, opened in Chennai earlier this month, Xiaomi is selling products like an electric cycle, a self-balancing scooter, an electric folding bike, smart shoes, smart cooker, laptop, water purifier. These products are available in China but can only be bought at the offline showroom in Chennai.
The company will use feedback from customers on these products to understand the level of customisation required before launching some of them in India.Manu Kumar Jain, Managing Director and Vice-President, Xiaomi India
India is also the first market outside of China, where Xiaomi has introduced its televisions. In India, Xiaomi currently sells smartphones, air purifiers and mobile accessories like power banks.
India is a very important market for us and within a very short time, we have been able to capture significant market share in the smartphone market. TV is a big category after smartphones for Xiaomi and in China, we are the fastest growing TV brand.Manu Kumar Jain, Managing Director and Vice-President, Xiaomi India
The combined market share of the company in online and offline is 27 percent according to market research institute IDC, he said. “We grew almost 20-30 times in offline. We already have 2,500-Mi preferred partners in 25 big cities in India,” he said. The company has around 750 service centres for phones across the country, and wants to manufacture everything here, he added.