According to a new report, Chinese firm Xiaomi is likely to bring its crowdfunding platform to India. It will sell consumer electronics developed by startups in the country through this policy. The company is ultimately planning to expand its Internet of Things (IoT)-based Mi Ecosystem via these goods.
In the Chinese model of the crowdfunding platform, the products are not branded as Xiaomi’s but are compatible with the Mi Home app developed by the company. The brand endorses the gadgets and acts as a mediator of sales between the customer and the startup. The proceeds are then used as funds.
Xiaomi Vice President Hugo Barra was quoted saying that the crowdfunding portal in India will probably be different from the one in China. This is due to the local rules for selling electronics, which are not the similar to those in other countries. It takes around 3 to 6 months to obtain a sales certification for such products.
If Xiaomi plans to bring its platform to India, it will have to work upon the obstacles that are present in the sales of devices in the country. Barra has said that the company will first look up solutions to these challenges before implementing the system here.
The crowdfunding site will sell gadgets that can be used via a smart, internet-connected network. Xiaomi has developed Mi Ecosystem to cover more gadgets under IoT. It has endorsed products which support this system and intends to invite more of them on board. The company recently launched an air purifier that can be controlled through the user’s smartphone.
While IoT has already taken off in the developed world, it is yet to become the next big thing in India. The government is already framing a policy for the regulation of this system, and has plans to bring 5G into the country as soon as it is commercially viable.