Xiaomi Inc Plans to Invest In Indian Tech Startups and Overseas Media Content
China’s Xiaomi Inc. is the world’s No.3 smartphone maker. It plans to invest in Indian tech start-ups and overseas media content. The budget Smartphone maker is looking forward to dominate Indian homes with its own TVs and appliances.
Xiaomi Inc has become the world’s most valuable tech start-up with the value of the company being$45 billion. They sold their first handset just three years ago. The company announced a $1.1 billion fund–raising in last December.
Xiaomi, unveiled the flagship Mi Note, its challenger to Apple’s iPhone 6 Plus, earlier this week. The Mi Note is shorter, thinner and lighter than the iPhone. Xiaomi’s immediate competitors in the handset market are Samsung Electronics Co Ltd and Apple Inc.
The company is planning to expand their products and have their eyes set on home appliances and television. About $1 billion has been already reserved for the internet TV content by this Beijing based company.
“Where we really want to make significant investments is in content, particularly in the Chinese market to start with, but beyond that in other markets as well,” Hugo Barra, vice president of Xiaomi’s global division, said during an interview on Friday.
According to Samsung’s book, the recent investments made by Xiaomi include a Chinese electronics maker as part of the strategy to build an Internet-of-things environment, where devices can be controlled using Smartphones.
“One area that we are also looking to make some investments in is start-ups in India. India is already the largest market for us outside of mainland China,” Barra said. He did not, however, explain about the types of start-ups. According to critics, the company is not trying to expand in the western market as they still have few patents to compete.
Barra made it clear that “It doesn’t have anything to do with intellectual property. It has to do with the fact that we have much more significant opportunities in developing markets, where our model of selling very high specification devices at really aggressive prices is much more powerful.” According to him “These are larger populations when you add them together than the Western world.”
According to the exclusive report made by Reuters the Chief Executive Lei Jun and Facebook Inc counterpart Mark Zuckerberg discussed a potential investment by Facebook in China’s top smartphone maker ahead of last month’s fundraising, but a deal never materialized.
Barra refused to comment on Xiaomi’s cooperation with Facebook. However, he mentioned that they had a very good relationship.