In less than three years of its launch in India, Xiaomi turned profitable in the country in the fiscal ended March 2017, according to the Economic Times report.
Xiaomi registered the maximum growth during FY17 with sales surging 696% to Rs 8,379.3 crore. It made a profit of Rs 163.9 crore. A year ago, it had revenues of Rs 1,046.2 crore with net loss of Rs 46.9 crore.
The financial performance in India is likely to help the company’s prospects about an initial public offering where it is seeking a valuation of at least $50 billion.
After China, India has become the next largest market for Xiaomi. The company witnessed its sales quadrupled in September quarter in India. It has emerged as the fastest growing smartphone brand in the country, according to the International Data Corporation.
The Chinese phone maker company accounted for 24 percent of India’s smartphone market in the third quarter ending September this year. This is over 6 per cent rise from the last quarter when its market share was at 17 percent.
Xiaomi targets double profit
The company is going to redefine the Indian market with a steep revenue of $2 billion it plans to generate this year, twice the amount from 2016.
Manu Jain, Xiaomi India Head earlier said that the company has seen 328 per cent growth in H1 2017 compared to same period last year. This was driven by strong sales of devices like Redmi Note 4, Redmi 4A and Redmi 4. 2X growth over last year is definitely achievable in 2017.
The company is pushing hard to achieve the expected revenue this year. It is expanding its retail presence as well as after-sales service. Compared to the beginning of the year, Xiaomi India has increased its service centres from 225 to 500.
The company is also setting up Mi Homes to allow consumers to experience the products before buying them. It set up the first Mi Home was in Bengaluru in May.