Chinese handset maker Xiaomi is alleged to eye becoming one of the largest financial-technology companies in India through its Mi Credit-lending service and Mi Pay application.
Already offering services such as insurance and supply chain financing in China, Xiaomi diversifies the services further to India as well, keeping in mind the increase in demand for credit lending services in the country.
“India is the biggest market after China for Mi Credit. We are currently focused on the Indian market. We want to make it more successful and scale it up in the next 12 months… we want to be a significant player in this space,” Hong Feng, co-founder of Xiaomi Corporation, told ET.
With the support of institutions such as Aditya Birla, Finance, Money View, EarlySalary, Zestmoney, and CreditVidya, Xiaomi aims to collaborate with nonbanking financial companies as well to launch more services.
The company is hunting for fin-tech startups for possible collaboration through partnerships or investment to bolster its financial services bunch. “If there are good companies, we would be happy to evaluate investing or collaborating with them to launch new services,” said Manu Jain, vice president of Xiaomi.
“We see a huge opportunity for consumer lending in India, with estimates reaching up to $1 trillion dollars in digital lending by 2023, going by an elaborate BCG report. This makes us believe that our Mi Finance business, based on solutions such as Mi Pay and Mi Credit, can truly revolutionize the Indian fin-tech industry,” Hong said, adding that Xiaomi will bring more proven products to India from China.
Mi Credit services are prevalent in more than 10 states spanning across 1,500 pin code areas and now further wants to extend its availability to all pin codes (at least more than 19,000 postal zones by the end year 2020).
Xiaomi expects that the business influx from India in relation to its finance business will help support other segments such as its hardware and internet services business in India. The Chinese brand has signed agreements of non-data breach with its partners to shield consumer data. All user data on Mi Credit is stored securely in encrypted format in India through Amazon Web Services Cloud Infrastructure.
The company aims at complete security of transaction with 100% data encryption.