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The Silicon Review Asia

Xiaomi Invests Rs 3,500 Crore into Indian Business

Xiaomi Invests Rs 3,500 Crore into Indian Business

Xiaomi has pumped in Rs 3,500 crore into its Indian business, the ET reported on Monday. The new investments mark the highest fund infusion for the company since it entered the Indian market four years ago.

People familiar with the matter stated that the capital would be used to expand the Mi home retail chains and also foray into the white goods segments like refrigerators, laptops, washing machines, and purifiers.

The regulatory filings with Registrar of Companies stated that Xiaomi invested the money into two branches of the Xiaomi Technology India. Both the infusions were carried out this year; the first one on January 17 - Rs. 1,500 crore and the second one on March 1- Rs. 2,000 crore. The company did not mention anything about the fund usage in its fillings.

The investments were made by Xiaomi Singapore Pte Ltd (the holding company); owns 99.9% of the Indian business and the remaining 0.1% is owned by Xiaomi HK Ltd. The number of shares that were offered by Xiaomi Technology India to the holdings company during the first transaction was 3,786. And the number of shares that were allotted during the second transaction was 6,959. All the share offerings were decided on a premium right basis.

Xiaomi India has spent their money very carefully until now since it depended on an asset-light model and has been using the resources to expand their business.

Currently, Xiaomi has been dependent on e-commerce sites like Flipkart and Amazon to sale their products in India. As per reports by Counterparts, a Hong-Kong based market tracker revealed that Xiaomi led the Indian smartphone market in Oct-Nov quarter of 2017; overtaking their rivals Samsung.

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