(Yicai Global) Nov. 21 -- Leading smartphone maker Xiaomi Technology Co. will invest USD1 billion in 100 Indian startups over the next five years, TechNode China reported yesterday.
"We are interested in any application that can increase the frequency of smartphone use," said Lei Jun, Xiaomi's chief executive. The company will create an ecosystem of mobile apps for its Indian users by supporting developers.
This investment will replicate Xiaomi's Chinese business model. Lei and the company have invested USD4 billion in 300 companies in China since 2011.
Xiaomi and Samsung Electronics Co. [KRX:005930] owned the two largest smartphone brands in India, per the latest data by market intelligence firm International Data Corp., together divvying up 23.5 percent of its market share. Xiaomi's shipments in India also logged annual growth of 300 percent in the third quarter.
Xiaomi has already invested in some Indian startups over the past years, including online music and video provider Hungama Digital Media Entertainment Pvt. Ltd. and KrazyBee, an online installment store for students run by Finnovation Tech Solutions Pvt. Ltd.