Chinese smartphone maker Xiaomi to invest in Indian start-ups.
Chinese smartphone maker Xiaomi has announced that it is looking to invest in small Indian start-ups that will help boost an ecosystem of suppliers in the country. The Vice President of Xiaomi, Hugo Barra said that the company has adopted the following policy in China as well and has done well so far. They would like to replicate the same thing in India as well.
The firm acts like a venture capitalist and promotes the growth of small start-ups, which in turn help in the process of innovation and production. Xiaomi is looking into start-ups in Bangalore and New Delhi. Barra also added that people do not realize that India is moving ahead from its image of being a center for outsourced backoffice jobs to an innovation hub.
The firm is stepping up its marketing activities, hoping to become a major player in the smartphone markets in the Asian markets. Recently, the company invested $300 million in online video provider iQiyi along with buying a major stake in Chinese video streaming website Youku Tudou.
Xiaomi has struck gold in India with its mi3, which was sold exclusively through online megastore Flipkart and was always sold out within hours of it being put up on sale. The company has also been in the news for the wrong reasons as the Indian Air Force issued an advisory to its employees to not use the Xiaomi Redmi 1S due to security threats. The company had began operations in India in July 2014.
