Ratan Tata invests in Xiaomi

Xiaomi, the Chinese smart device maker that just hosted its first global smart phone launch in India last month, has forged yet another thread of bond in India. Yes, the renowned business leader Ratan Tata becomes the first Indian to invest in this successful startup. However, no monetary details have been revealed. The founder and CEO of the company Lei Jun is rejoiced to have him on board!

A firm that entered India in 2014 is a firm that sells directly to customers through online retailers and with minimal marketing spending in order to keep its prices competitive. And this firm in such a short span has been able to become the 5th largest smart phone vendor according to Intera Data corp’s fourth quarter report.

Xiaomi’s CEO says that the idea behind this investment is less on monetary fronts and more to seek Tata’s advice and have him as a mentor for the company given his respected image. The company, after China is focusing on India very strongly, and this step will help the company pull a great business model for India too, under the guidance of the chairman of Tata Sons.

Another noteworthy thing that comes to the surface is, the recent surge in investments by Indian billionaires in mobile and internet related technology ventures. Last month only, Ratan Tata had invested in mobile payments and commerce venture paytm picking up a small stake in one97 communication, which owns and operates the company.

Let’s hope this investment by Ratan Tata is the start of an exciting journey with Xiaomi. Also, looking at the bright prospects of this startup, one can surely look forward to some new and great products coming to India! 😀

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