Xiaomi is looking to grab a lion’s share in the Indian Fintech space. How is Xiaomi planning to do it? Read and find out below.
You would have heard many times “Ban Chinese Goods!”. But, have you ever heard “Ban Chinese Services”? Probably that’s the reason, China based service providers are expanding their market share in India. So, after almost invading the Indian smart phone market, Xiaomi is entering into Indian financial-technology space.
We know you’re excited to know about Xiaomi’s latest announcement and of course we will let you know about it. But, here’s a fact to set the tone. According to a BCG report the consumer lending market might reach a whopping $1 Trillion by 2023!
What is Xiaomi planning?
Xiaomi is aiming at market leadership in Indian fintech space through its credit lending service and Mi Pay application. For this, Xiaomi needs to launch its others services such as insurance and supply chain financing in India. The Chinese corporate giant is looking to collaborate with Indian companies to launch its new services and expand its current operations.
For this, Xiaomi is reportedly in talks with Indian banks and NBFCs. By the way, currently Mi Credit services are available across 1500 pin code areas in India and the company plans to expand it to all (19000+) areas by March 2020.
Why are the Chinese concerned?
Because Chinese firms are quite concerned about Indian economy and wish to empower India so that it becomes a superpower soon! (Just being sarcastic) Please don’t even try believing this in the remotest possibility.
Of course, the company will scale to tremendous heights and mint money. The reason it has chosen India is because, it’s the biggest market after China for Mi Credit. We are not saying this but Hong Feng, Cofounder of Xiaomi.
Is it Possible?
Yes, definitely it’s possible because all Xiaomi needs to do is throw some discounts and other attractive offers and we would readily consume the service. This was emotional vengeance, now let’s talk about the logical part.
Xiaomi disbursed loans worth more than Rs. 28 crores through its Mi Credit app only in November! Besides this, more than 20% of the users opted for borrowing Rs. 1 Lakh, the maximum limit of loan amount. Just think, the banking/NBFC crisis is going on in our country and on the other hand people are conveniently borrowing from Mi Credit. Surprising but true!