16 November 2017
Chinese electronics giant Xiaomi plans to invest $1 billion in 100 Indian start-ups over the next five years, the company’s CEO Lei Jun said in a report.
Lei said that Xiaomi and its sister firm Shunwei Capital have already invested in six Indian companies which include Hungama and KrazyBee. He added that Xiaomi will invest in businesses that include content, mobile phone repair, hyperlocal services, fintech, and manufacturing.
"In China, in the past four years, we’ve invested $4 billion in over 300 companies. In the next five years, we will invest in 100 companies in India,” Lei said. “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 the Xiaomi business model,” he said.
Earlier this year, Xiaomi stated that the company is planning to back start-ups that enhance mobile experience.
“Any apps that increase the frequency of usage of smartphones—we’re interested in this. As long as it is related to acceleration of mobile internet. We only pick minority stakes. The purpose is to work closely (on the business side) with these companies,” Lei said.
The Chinese smartphone giant has led a $25-million round in online entertainment company Hungama Digital Media Entertainment, as well as its sister concern Shunwei Capital has invested $5-million round in mobile gaming start-up Mech Mocha Game Studios. The company is also in talks to invest $18 million in vernacular social networking platform ShareChat.
Xiaomi has captured 22% of the Indian smartphone market in Q3, 2017, and is the second biggest vendor after Samsung which has a 23% market share.