Xiaomi gets a new investor: Indian tycoon Ratan Tata

Indian biz tycoon Ratan Tata, who heads the US$100 billion Tata group, has just picked up a stake in Xiaomi from China.

We're really excited to announce our newest Xiaomi investor — Mr Ratan Tata, Chairman Emeritus of Tata Sons.

— Hugo Barra (@hbarra) April 26, 2015

More than the investment itself, a thumbs up from the chairman emeritus of the Tata Group, who is one of the most respected business figures in India, adds to the Xiaomi mojo which has already cast a spell over the country.

Lei Jun, founder and CEO of Xiaomi, says: “Mr. Tata is one of the most well-respected business leaders in the world. An investment by him 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.”

Xiaomi has said right from its entry into India that this is its second most important market after China. That’s not just because of the huge demand for smartphones but also for its tech savvy crowd who can appreciate Xiaomi’s value-for-money proposition.

Last week, the Chinese company put its money where its mouth is, with a global premiere of its newest flagship phone, the Mi 4i, in Delhi. Xiaomi’s popularity in India was evident from the winding queue outside the Siri Fort auditorium before the launch. It was like going to a cricket match, with fans lining up for hours in the 39 degree Celsius summer heat. The buildup to the event had the Xiaomi touch, with founders Lei Jun and Lin Bin taking an auto rickshaw ride to underscore the affordability factor that Xiaomi brings to smartphones with high-end features.

Ratan Tata has taken an active interest in the tech startup space ever since his retirement. Recently, Tata invested an undisclosed amount in mobile commerce company Paytm. He began his ecommerce innings with an investment in Snapdeal in August 2014. Then he picked up stakes in online jewelry portal Bluestone, furniture seller Urban Ladder, and GirnarSoft, the parent company of automobile portals Cardekho, Pricedekho, Gaadi, and Bikedekho.

Now, Xiaomi is the apple of his eye.