Xiaomi to exit financial services business in India: report
Chinese smartphone maker Xiaomi is set to wind down its financial services operations in India, according to a recent report citing sources familiar with the matter.
The company recently pulled its Mi Pay and Mi Credit apps from the local Play Store and its own app store in India, the report according to TechCrunch.
Three years after its launch, Mi Pay, which allowed users to pay bills and transfer money, is no longer on the list of approved apps by regulator National Payments Corporation of India (NPCI), the report said.
“As part of the annual strategic review activity and in response to enhanced focus on our core businesses, we closed Mi Financial Services in March 2022. In a short span of 4 years, we were able to connect and support thousands of customers. We are working with our partners and supporting our consumers throughout this process. We will continue to bring the latest technology and innovation to everyone through our products and services going forward,” a Xiaomi India spokesperson said on Friday.
NPCI did not immediately respond to a Reuters request for comment.
In India, Xiaomi’s largest market outside China, the company is the subject of government investigations over alleged tax evasion.
An Indian court recently refused to lift a freeze on Xiaomi’s $676 million (roughly Rs 5,500 crore) assets, even though the Chinese smartphone group said the enforcement action had “effectively halted” the company’s operations in its key Indian market.
The Chinese smartphone maker had earlier this month denied speculation that it would be moving its operations from India to Pakistan. In a tweet, Xiaomi clarified its stance after a report stated that the company may relocate its operations after its funds were frozen by authorities in India for alleged violation of Foreign Exchange Management Act (FEMA) rules.
A tweet by South Asia Index on Thursday claimed that the Chinese smartphone maker may move its operations from India to Pakistan. Xiaomi responded to the tweet on Friday, saying it was “completely false and baseless”.
This tweet is completely false and baseless. Xiaomi entered India in 2014 and in less than a year we started our Make in India journey.
99% of our smartphones and 100% of our TVs are made in India. We take all measures to protect our reputation from false and incorrect claims.— Xiaomi India (@XiaomiIndia) October 7, 2022
Xiaomi, in its response, also said that the company has joined the government’s Make in India initiative after it entered the Indian market in 2014. Moreover, 99 percent of the company’s smartphones and all TV models are assembled in India.
© Thomson Reuters 2022
