Chinese startup Xiaomi invest 25 million USD in Indian online music and video provider Hungama Digital Media Entertainment, in attempt to attract more customers in fastest growing market for smartphones. Xiaomi will begin to integrate the content of Hungama, including themes, and ringtones in their products. India is a fast growing market and important target for the Chinese company. Although there is no signs that smartphones market in India will grow with double-digit percentage, the sales of Xiaomi in the country does not follow the trend and expected to grow by 29% in 2016. The country’s population is 1.2 billion people and currently smartphone customers are over 220 million.
“India is a rapidly growing market, a strategic location for us and it is time to begin to offer our services there”, said vice president of global operations of Xiaomi, Hugo Barra. “We will begin to integrate the content of Hungama, including themes, and ringtones in our products”, added he.
Xiaomi is the fifth largest smartphone manufacturer in the world, competing with Samsung Electronics, Apple and other players to sell the device in India.
Hungama has a library of 8,000 Indian films and over 65 million monthly users of its platforms including music, video and movies. The expansion of faster 4G mobile networks in India are expected to increase demand for digital content.