Beijing-based smartphone and electronics manufacturer Xiaomi has set up its own venture capital firm with a registered capital of ₹203 crores ($29 million). The investment firm is named Chongqing Xiaomi Venture Capital and is set to focus on VC investment and consulting. It will be fully controlled by the Chinese firm.
Several media reports expected this move as the nine-year-old firm has announced its aggressive investment plan to invest in more than 100 startups for the next five years. The company has already invested in more than 270 startups.
Earlier in 2011, Xiaomi’s founder Lei Jun has also formed Shunwei Capital to invest in startups. The venture firm has been actively investing in early to growth stage Chinese and Indian startups. The fund currently manages $3 billion in investments. In 2018, the firm closed about $1.21 billion worth sixth fund.
Xiaomi manufactures smartphones as well as consumer electronics like 3D TV, drones and security cameras. The company also has products like messaging app, operating system, and external battery. In the first quarter, Xiaomi reportedly witnessed over 27% yearly growth in its revenue and the international growth stood at 35%.
Xiaomi captures a 28.9% share in the Indian smartphone market. The brand is set to launch a complete new range of products including electric vehicles, refrigerators, washing machines, and water purifiers. The company has invested in several startups like Sharechat, Hungama, Krazybee, and ZestMoney.
In March, Xiaomi announced an investment of ₹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.