Xiaomi Floats Own VC Firm With Registered Capital Of $29 Million

0
451
Advertisement
  • The investment firm named Chongqing Xiaomi Venture Capital will be completely controlled by Xiaomi
  • Xiaomi has announced to invest in over 100 startups, for the next five years in March
  • Till date, Xiaomi has invested in over 270 firms worth 29 billion yuan

After manufacturing and distributing mobile phones and consumer electronics, Beijing-based Xiaomi has set up its own venture capital (VC) firm with registered capital of 200 million yuan ($29 million).

Representative image

The investment firm named Chongqing Xiaomi Venture Capital, which will focus on VC investing and consulting will be completely controlled by the Chinese manufacturer, as per 36Kr report.

This was expected as the nine-year-old firm has announced aggressive investment plans, to invest in over 100 startups, for the next five years in March. Till date, it has invested in over 270 firms worth 29 billion yuan.

It’s worth noting that Xiaomi’s founder Lei Jun had founded Shunwei Capital in 2011 to make investments in startups. Besides China, it has been actively investing in early to growth stage Indian startups. Currently, it manages $3 billion in investments. Last year, it closed about $1.21 billion worth sixth fund.

Advertisement

In the first quarter of financial results, Xiaomi reportedly witnessed over 27 per cent yearly growth in revenue. The company’s international growth was even more, about 35 per cent growth YoY.

Betting high on India
According to IDC latest report, Xiaomi captured 28.9 per cent share in the India smartphone market. Xiaomi India Managing Director Manu Kumar Jain had also claimed that the Chinese smartphone maker is 54 per cent bigger than the second brand.

This just appears to be a beginning as Xiaomi wants to manufacture everything in India. In March, Xiaomi announced an investment of Rs 3,500 crore into its Indian entity in an effort to bid to strengthen its stranglehold in the Indian market.

Last month, Jun had said that India will be majorly benefitted, in terms of investment, due to the recent trade war between China and the US.

Advertisement

SHARE YOUR THOUGHTS & COMMENTS

Please enter your comment!
Please enter your name here

Are you human? *