“Financial services are no longer a subset as they are big enough in Hong Kong, India and China to be an independent business,” Manu Jain, managing director of Xiaomi India, told ET.
Xiaomi’s financial services vertical is now operating as an independent business due to the size of the market and the company’s renewed focus.
As part of its loan service package, Xiaomi has started offering business loans, gold loans, and credit card services.
Its financial services business returned to growth mode with a 95% jump in revenue in the March quarter compared to the October-December 2020 period.
“We recorded 35% year-on-year growth in the first quarter of (calendar) 2021 despite a decline after the second wave of Covid-19….
The financial services industry functions as a marketplace for various partners who offer services on Xiaomi’s platform, said Ashish Khanderwal, Head of Financial Services at Xiaomi India.
Xiaomi works with Axis Bank, IDFC Bank, Aditya Birla Finance, Money View, Early Salary and Credit Vidya for loan services.
For the online credit card offer, it has partnered with Stashfin, while the health and cyber insurance service is offered in partnership with ICICI Lombard.
Jain said the company has disbursed over 100,000 loans with credit of up to Rs 25 lakh and is operating with 22,000 PIN codes. Mi Pay, he said, is growing rapidly with a pan-Indian user base of 50 million.
As to whether Xiaomi would venture into the growing cryptocurrency segment, Jain said, “We are awaiting clarification on the regulatory front… crypto is an interesting area, and that’s the biggest word in the world. fashionable and doing exceptionally well. ”
Two years ago, Xiaomi invested in the Bengaluru-based startup KrazyBee for the Mi Credit service. Regarding start-up investments, Jain said the new regulations require certain approvals before they can make an investment.
“… we would like to be 100% compliant with all local laws at all levels, so no immediate investment plans,” Jain said.