Xiaomi doubles its financial services business; says need regulatory clarity on crypto, Telecom News, ET Telecom

NEW DELHI: Handset maker Xiaomi is doubling its financial services business by diversifying into a full spectrum lending platform with a clear focus on payments, loans and insurance. The company, which started as part of its internet service business, now operates as an independent business due to the size of the market and the renewed focus.

As part of the loans, the company has now started offering business loans and will launch gold loans soon. He also began to offer credit cards.

The business has been badly hit by the pandemic, and Xiaomi’s partners have switched from granting new loans to collecting money from customers last year.

“It’s no longer a subset because it’s big enough, is it. In Hong Kong, India and China in various other places, it is big enough to be an independent company, ”Manu Kumar Jain, managing director of Xiaomi India, told ET in an interaction.

Xiaomi’s financial services business returned to growth with a 95% increase in business in the January-March quarter compared to October-December 2020.

“We saw 35% year-over-year growth in the first quarter of 2021, but we saw a decline due to the second wave of Covid. However, we are growing again at a significant rate quarter over quarter, despite this slowdown for about two quarters, ”Jain said.

Ashish Khandelwal, Head of Financial Services, Xiaomi India, said that its financial services business functions as a marketplace for various partners who offer their services on Xiaomi’s platform. “… our ability to serve customers has been compromised a bit given the COVID situation last year, but there is something we may have been going through. Now is the right time for us to make it a full proportion. “

Xiaomi works with Axis Bank, IDFC Bank, Aditya Birla Finance Limited, Money View, Early Salary and Credit Vidya for the loan service. For the 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 1 lakh in loans with a loan amount of up to Rs 25 lakhs and is operating with 22,000 pin codes.

Mi Pay is growing rapidly with a strong user base of 50 million users nationwide.

When asked if Xiaomi would venture into the growing cryptocurrency, Jain said, “We will want to wait for all the regulatory stuff. Of course, crypto is an extremely interesting area, the biggest word in the world. fashion and is doing exceptionally well. But, we would like to understand better on the regulatory side. “

Xiaomi had invested in 2019 in the KrazyBee startup based in Bengaluru for the Mi Credit service. Regarding startup investments, Jain said the new regulations require certain approvals to make an investment and as always.

“… we would like to be 100% compliant with all local laws at all levels, be it central government, state government or even city-level government.” At the moment, no immediate plans or investments of any kind.

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