Chinese smartphone major Xiaomi will invest $1 billion in 100 Indian startups in next five years. The move is aimed at expanding the company’s business to other domains of technology and innovation. Presently India is the largest market for Xiaomi after China. According to reports, the rave response to Xiaomi smartphones persuaded the company to make its presence strongly felt in Indian market.
“Xiaomi and its sister firm Shunwei Capital will invest in Indian startups that produce quality content, financial technology and hyper local services to increase adoption of mobile internet,” said Lei Jun, CEO, Xiaomi.
Shunwei Capital already has shares in Indian startups such as Krazybee and Hungama. With this step, the company hopes to deliver excellent results in India as well.
“We will basically replicate the most successful ecosystem business model of China in India,” said Lei Jun.
Xiaomi will also launch an exclusive range of home appliances next year in India to enter the segment. The company will work on its unique strategy of providing all types of integrated products and services.
“We focus on a few key things and everything else, we let our partners provide. We’ve reached just a huge scale in seven years because of this partnership/affiliation model,” added Lei.
Xiaomi’s extensive entry to Indian market will definitely provide a strong challenge to existing players in the segment as the Chinese brand is immensely popular among Indian customers.