Leading Mobile Maker to Start Focusing on Fintech Biz Growth
Chinese handset maker Xiaomi will soon start focusing on its fintech business, which has been severely affected by the pandemic. Over the past year, the company’s partners have moved from granting new loans to collecting money from customers.
“Last year it was really tough for our fintech business because after the lockdown all of our business fell to zero. The objective of all our partners on the platform then shifted from granting new loans to ensuring that the collections are unfolding ”, Manu Jain, Head of Xiaomi India and Global Vice President mentionned.
“Now that things are back to normal, business is slowly returning to where it should be and we will soon start to focus on growth,” he added.
The handset maker aimed to become one of the biggest players in the fin-tech space in the country through its Mi Credit loan service and Mi Pay app. He sees India as the second largest market after China for Mi Credit.
Xiaomi, which invested in Bengaluru-based startup KrazyBee to launch a Mi Credit pilot in 2019, also intended to further expand its financial product portfolio with new services like insurance and home financing. supply chain, which it already offers in China.
The company was in talks with bigger banks and more NBFCs to launch more financial services. He has integrated NBFCs or Fintechs such as Aditya Birla Finance Limited, Money View, EarlySalary, ZestMoney and CreditVidya.
Chinese companies’ offerings such as quick loans, insurance, and mutual fund investments have failed to gain momentum, mainly due to backlash against Chinese companies over Sino border tensions. -indians for several months, fintech analysts said.
In recent months, investigative bodies such as the Enforcement Directorate (ED) and Criminal Investigation Departments (CID) of various state police forces have launched investigations against more than two dozen of China-backed fintech lenders such as SnapIt Loan, Bubble Loan, Go Cash and Flip Cash and have asked cost gateways like Razorpay and Paytm to cease trading with these app-based companies, according to reports.
Many of these app-based lenders charged high interest rates, and when they defaulted, their debt collectors began to publicly harass borrowers, resulting in suicides in several states.
“We absolutely don’t want a user to be harassed while their loan is being collected. While of course, it is our partners who issue the loan on our Platform, we strive to ensure that users have a good experience and are not harassed, ”Jain said.