Two weeks later, Chinese phone maker Xiaomi Sunday announced that it is planning to invest around $1 billion in the Indian startup ecosystem over the next five years, according to the Mint report.
Xiaomi and its sister company Shunwei Capital will make the investment in around 100 Indian companies such as content, financial technology, hyperlocal services, including mobile phone repairs, and manufacturing in order to create an ecosystem of apps around its smartphone brand.
“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,” Mint quoted chief executive Lei Jun.
He added that the company plans to replicate the most successful ecosystem business model of China in India. It will have all types of services and products and integrate them. That is the Xiaomi business model.
If the company meets its investment target, it would become one of the most prolific internet investors in India.
Earlier, the company’s India product manager told Entrackr that they have long-term plan in India and would invest in many other products.
“We are not just a phone maker in China. We also offer loans (Mi Finance) and we are also in the content business (Mi Video and music). Similarly, we have a long-term goal in India as we plan to introduce similar products. We have already made the investment here across various domains — entertainment (Hungama), finance (KrazyBee) and networking app (Sharechat) — which is the way towards a large goal,” said Jai Mani, lead product manager of Xiaomi India.
Xiaomi is bullish on the Indian internet market where it has emerged as the frontrunner in the smartphone space. Besides, it plans to redefine the Indian market with a steep revenue of $2 billion it plans to generate this year, twice the amount from 2016.
Recently, International Data Corporation (IDC) released a report and said that the company accounted for 24 percent of India’s smartphone market in the third quarter, which is over 6 percent rise from the last quarter when its market share was at 17 percent.