This is Tata’s first investment in mobile handset maker, seen as a PR coup for Chinese firm
Tata Sons chairman Emeritus Ratan Tata (centre) with Xiaomi India chief Manu Jain (left) and Xiaomi VP international Hugo Barra (right).
New Delhi: Tata Sons chairman emeritus Ratan Tata has acquired a stake in Chinese handset giant Xiaomi, the first investment by any Indian in the smartphone maker. Mr Tata’s investment is seen as a sort of public relation coup for Chinese firm Xiaomi which is looking to rapidly grow in India as it reaches saturation in its home market, China. Mr Tata will help Xiaomi to shed scepticism with which security analysts in India see Chinese firms, especially those operating in the communication sector.
India has emerged as the second biggest market for the firm after mainland China. Xiaomi, the number three global smartphone maker, was valued at $45 billion after a funding round in December. Last week Xiaomi hosted its first global launch outside China in New Delhi, unveiling its Mi 4i model that supports six Indian languages. In the two days of registrations opening for the Mi 4i sale on Flipkart, more than 2,25,000 customers had registered to purchase the phone. This shows the potential of growth for Xiaomi in India. Xiaomi has been growing rapidly in India after entering the market in July 2014.
Analyst firm IDC ranked the company as the fifth largest smartphone vendor in India in fourth quarter 2014. “Mr Tata is one of the most well-respected business leaders in the world. An investment by him is an affirmation of the strategy we have undertaken in India so far. This is just the start of an exciting journey, and we are looking forward to bringing more products into India,” said Lei Jun, founder and chief executive officer of Xiaomi. Mr Tata has already made personal investments in homegrown e-commerce players like Snapdeal, Urban Ladder, Bluestone and Cardekho.com. In March this year, he also invested in mobile commerce firm Paytm.
( Source : dc correspondent )
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