Xiaomi India, which saw its fintech business go into a limbo because of the pandemic and the resultant economic slowdown last year, is now ready to train all its energies on the fintech sector.
The popular electronic major is working to refurbish its Mi Credit lending service and Mi Pay application.
Mi Credit is an online marketplace to avail instant loans up to rupees one lakh. The idea is to make loan applications faster, easier, and more secure without the need for any hard paperwork, creating an entirely digital experience.
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But Chinese fin apps are under a cloud in India
In a chat with the Economic Times, Manu Jain, Xiaomi India’s head and global vice president said, “last year, it was really difficult for our fintech business as post the lockdown our entire business came down to zero. The focus then for all our partners on the platform changed from giving fresh loans to ensuring the collections are happening.”
He added now that things are getting back to normal, business is slowly getting back to where it should be and "we’ll soon start focusing on the growth."
But Xiaomi has its task cut out as many Chinese companies and financial app-based quick loans, insurance and mutual fund entities have come under a cloud in India in the last few months. Many have been booted out by Google Play Store, while a few others have been shown the door by Indian law-enforcement agencies.
These companies were said to be short-changing and harassing unwary Indians.
“We definitely don't want any user to be harassed during the recovery of their loan. While of course, it's our partners who issue the loan on our platform, we strive to ensure that users have a good experience and are not harassed,” Manu Jain was quoted as saying.
Xiaomi bets big on India
It is learnt that Xiaomi is in talks with a few banks and NBFC (Non-Banking Financial Companies) to bolster its fintech presence. Xiaomi is planning to expand its service to insurance, supply chain financing, and more. The company has already invested in KrazyBee, a Bengaluru-based startup in 2019. It has also tied up with companies like Aditya Birla Finance, Money View, EarlySalary, Zestmoney, and CreditVidya.
These partnerships and newer ones are expected to help Xiaomi to make further inroads with Mi Credit and Mi Pay.
It is betting big on India for its fintech products.
Xiaomi, in general, despite its Chinese origins is working to make it come across as a local company. Recently, it has announced two new smartphone production facilities and one new smart TV plant in India. With this, Xiaomi has managed to achieve 99% local manufacturing for phones and 100% local manufacturing for TVs, as of January 2021.
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