Chinese tech firm Xiaomi Corp has followed in the footsteps of Tencent and Alibaba in its move of opening a personal loan service in India that further boosted the rise of internet finance services in the country.
According to China Daily, Xiaomi's loan service is targeted at both millennial consumers and young professionals who are in search of improved internet finance market providers.
While Chinese tech giants Tencent and Alibaba already have an established presence in the country in terms of the said service, Xiaomi's challenge may be a further call on other companies to tap India's growing internet finance market.
The company's Mi Credit offers consumers options to borrow amounts between 5,000 Indian rupees and 100,000 Indian rupees for their internet needs. The company noted that it offers low-interest rates for its target audiences.
As part of its efforts to challenge Tencent and Alibaba in this regard, the company partnered with a whole host of Indian startups including, but are not limited to EarlySalary, ZestMoney, and Aditya Birla Finance.
It is worth noting that Xiaomi is already the top smartphone provider in India. Over the last nine quarters, the Chinese tech giant has been a favored vendor due to the vast array of products that it offers to Indian consumers.
Industry experts predicted that the firm's expansion into India's internet finance market could further up its momentum in the country, given that it provides offers not even Alibaba or Tencent can top.
On the other hand, Xiaomi's ventures in India also come with challenges. Analyst at research firm iResearch Consulting Group, Li Chao, argued that competition will be tough, especially with the rising interest of its competitors in the country that it dominates in terms of smartphone sales.
India's internet finance market is expected to expand to $1 trillion within roughly three years, market research firm Boston Consulting Group forecasted. Industry analysts said companies like Xiaomi should take advantage of the rise in digital loans.
More details about Xiaomi's Mi Credit were revealed by Tech in Asia. The outlet said the service is available in around 1,500 pin codes spread across the country but it is expecting to have the service open for the entire country before year-end.
While the Chinese smartphone giant has been focusing on selling smartphones in India over the past years, the recent move of venturing into the digital loan market is a further confirmation of its efforts to diversify its business operations.
Diversification is crucial in ensuring that other arms of the business will curb the impact of a particular department's decline, experts noted.
