Xiaomi has made huge indents into the Indian markets continuously from the last few years. It is known that the company was the sole reason for the exit of the likes of Micromax, Intex and other local players. Xiaomi’s strategy from the start has always been to price its smartphones the lowest. At the same time, Xiaomi provides unbelievable specifications on its devices. Even now, Xiaomi is continuing this strategy and it has paid off for the company.
However, it is not entirely possible for a company to make profits all the time with such a low margin. As you might be aware, Xiaomi has come out in public to claim that they keep just a 5% profit margin on all its products. Now, the latest news will be comforting if you are a Xiaomi supporter/fan. This is because Xiaomi India has received massive funding of $507 Million.
However, there is nothing to worry regarding the company’s future in India as the funding is reportedly an internal one. We are getting to know that the funds have been sent by Xiaomi Singapore. Also, this funding is reportedly not for the smartphone business of Xiaomi India. Instead, the funds will be used by Xiaomi in India to enter the country’s White Goods sector. According to Inc42’s report, these funds were received in parts by the company
According to the Ministry of Corporate Affairs filings of Xiaomi Technology India Pvt Ltd, the company received two infusions this year:
- January 2019: INR 1499.9 Cr ($217.4Mn) from Xiaomi Singapore for 3,786 Equity shares
- March 2019: INR 2000 Cr ($289.8 Mn) from Xiaomi Singapore for 6,959 Equity shares
If you are unaware by the term “White Goods”, it is basically the larger appliances like Refrigerators, Washing Machine etc. which Xiaomi already manufactures in China. This indicates that we will soon see the company launching its own White Goods in the Indian market.
White Goods also gets its name as they are goods mostly White in colour. If you are aware of Xiaomi’s pricing for White Goods in China, it is one of the cheapest options out there. So it will certainly ruffle a few feathers if the same gets launched in India