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Ratan Tata has picked up a stake in Chinese smartphone vendor Xiaomi for an undisclosed amount.
Tata, chairman Emeritus of Tata Sons, has invested in several start-ups over the past year. This is, however, the first investment by an Indian in Xiaomi.
Recently, the Chinese company raised $1.1 billion from a clutch of global investors, including Jack Ma, executive chairman of Alibaba Group Holding, who invested privately through his Yunfeng Capital fund.
Valued at $45 billion, Xiaomi is now the fifth-largest phone vendor in India, a market currently dominated by Micromax and Samsung.
A mentor too Xiaomi’s India head Manu Jain said Ratan will not just be an investor but also a mentor and guide for the company.
“There is no one better than Ratan Tata who could guide us. We approached him a few weeks back with the proposal and it is a dream come true for me that he believes in our proposition to build Xiaomi in India,” Jain told BusinessLine .
Over the last one year, Tata has invested in eight ventures, including Grameen Capital India, Swasth (a healthcare service provider to low-income group), Snapdeal, Paytm, Urban Ladder, Bluestone and CarDekho.
Most of these companies have got more than an investor in Ratan Tata.
For example, Tata meets the team running Urban Ladder once every two months and gives his thoughts on not just product and brand strategy but also insights into the types of wood and designs for furniture.
Also, he recently took up a mentoring role in the $350-million venture capital firm Kalaari Capital, which has Urban Ladder, Bluestone, Snapdeal, Cardekho, Zivame and 23 others as its portfolio companies.
Growing rapidly Commenting on his investment in the Chinese phone company, Tata said, “Xiaomi is one of the fastest-growing companies in the world. It has brought its innovative business model and high-quality products to India with huge success.”
Xiaomi has been growing rapidly in India after entering the market in July 2014. In a press statement, Lei Jun, founder and CEO of Xiaomi, said, “An investment by Tata is an affirmation of the strategy we have undertaken in India so far.
“This is just the start of an exciting journey, and we are looking forward to bringing more products into India.”
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