NEW DELHI: Chinese handset manufacturer Xiaomi will soon begin to focus on its fintech business, which has been hit hard by the pandemic. In the past year, the company’s partners have moved from providing new loans to collecting money from customers.
“Last year was very difficult for our fintech company because after the lockdown all of our business fell to zero. The focus of all our partners on the platform then shifted from granting new loans to guaranteeing that collections are taking place ” Manu Jain, Said the head of Xiaomi India and global vice president at ET.
“… now that things are back to normal, business is slowly getting back to where it should be and we will soon start to focus on growth,” he added.
The handset maker aimed to become one of the biggest players in the country’s fin-tech space through its Mi Credit loan service and the Mi Pay app. He sees India as the second largest market after China for Mi Credit.
Xiaomi, which invested in Bengaluru-based start-up KrazyBee to launch a Mi Credit pilot in 2019, also planned to further expand its financial product portfolio with new services such as insurance and home financing. supply chain, which it already offers in China.
The company was in talks with bigger banks and more NBFCs to launch more financial services. It has integrated NBFCs or Fintechs such as Aditya birla Finance Limited, Money View, EarlySalary, Zestmoney and CreditVidya.
Offers from Chinese companies such as quick loans, insurance and mutual fund investments have failed to gain momentum, mainly due to backlash against Chinese companies over Sino border tensions. -indians for several months, fintech analysts said.
In recent months, investigative bodies such as the Enforcement Directorate (ED) and Criminal Investigation Departments (CID) of various state police forces have launched investigations against more than two dozen lenders. China-backed fintechs such as SnapIt Loan, Bubble Loan, Go Cash and Flip Cash and has called on cost gateways like Razorpay and Paytm to end their relationships with these app-based companies, ET recently reported. Many app-based lenders charged high interest rates, and when they defaulted, their debt collectors began to harass borrowers publicly, leading to suicides in several states.
“We certainly don’t want a user to be harassed while their loan is being collected. While it is of course our partners who issue the loan on our platform, we strive to ensure that users have a good experience and are not harassed, ”Jain said.