After successfully making a mark in the smartphones segment, Xiaomi is geared up to extend its business to lending money for consumer electronics purchases
Consumer electronics major, Xiaomi has planned to extend its business to consumer finance area to facilitate loans for electronics, home appliances, lifestyle products, vehicles, furniture, tools, utensils and office equipment purchasing in India. It also wants to offer financial assistance to companies through the Xiaomi Financial Services.
As per reports, the company will approach the Reserve Bank of India to function as a non-banking financial company (NBFC). Xiaomi has business expansion plans for selling laptops, gaming consoles, computer accessories, lifestyle products, network equipment, clothes, toys, backpacks and suitcases, and bath and kitchen products in India.
The company will be investing in startups and strengthen its portfolio by producing IoT devices. It has already invested on 10 startups in India that focus mostly on a strategy of building internet services like that of Sharechat. It has, earlier, started its lending firm in India in partnership with KrazyBee
Xiaomi has made investments in 10 startups in India, several of which align with its strategy of building internet services, such as social networking app Sharechat, digital content platform Hungama, and lending startup Krazybee, and it has already launched products in partnership with these companies.
The company will churn out 30 per cent for Research and development, 30 per cent on building the IoT platform, 30 per cent for global expansion and the remaining 10 per cent for other expenses.
From smartphones to lending business
Xiaomi kickstarted with smartphone sales and surpassed Samsung to emerge as one of the most preferred brands in India. It has also ventured into the LED TV segment and joined with local producers to boost local manufacturing in the country.