Xiaomi’s budget smartphones have created a buzz in India. Within just four years, it has overthrown years-old market leader, Korean phone maker Samsung.
The latest Counterpoint research said that in the Q4 of 2018, while Xiaomi held 27% market share, Samsung had a strong growth to hold 22%. To further strengthen presence in India, Xiaomi has now invested ₹ 3,500 crore (₹507 million) in its Indian entity.
According to the Ministry of Corporate Affairs filings of Xiaomi Technology India Pvt Ltd, the company received two infusions this year:
₹ 1499.9 crore ($217.4 million) from Xiaomi Singapore for 3,786 Equity shares in January 2019 and ₹2000 crore ($289.8 million) from Xiaomi Singapore for 6,959 Equity shares in March 2019.
Even though the company didn’t specify how it will use the funds, an ET report cited two senior industry executives to say that Xiaomi would utilise the funds to enter the white goods sector — such as water purifiers, washing machines, laptops and refrigerators — as well as to expand its company-owned Mi Home retail stores to sustain the leadership in the Indian smartphone market.