Xiaomi pumps $0.5bn into India business

Xiaomi has just invested $0.5 billion (Rs 3,500 crore) into its Indian entity, the highest by the Chinese company since it entered the country over four years back.

As per regulatory filings with Registrar of Companies, Xiaomi infused the money into Xiaomi Technology India in two tranches this year: $294 million (Rs 2,000 crore) on March 1 and $220 million (Rs 1,500 crore) on January 17.

Two senior industry executives said Xiaomi would utilise the funds to enter the white goods sector - such as water purifiers, washing machines, laptops and refrigerators - as well as to expand its company-owned Mi Home retail stores to sustain the leadership in the Indian smartphone market.

The money has been infused by the holding company, Xiaomi Singapore Pte Ltd, which owns 99.9 per cent of the Indian entity - the balance 0.1 per cent is owned by Xiaomi HK Ltd, which did not make any fresh investment. Under the first transaction in January, 3,786 shares of Xiaomi Technology India were offered to the holding company at a premium on a rights basis, while for the second one, in March, 6,959 shares were allotted.