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One of the leading manufacturers of mobile phones in India has again taken a major step to strengthen its footprint into the digital payment’s space in India. The smartphone manufacturer Xiaomi is reportedly planning to pick up a stake in ZestMoney in its recent funding round of $20 Million.
What does Zest Money does?
Zest money offers instant credits on instalments and ease the process of approvals by using faster digital process. It works like a credit card where you could buy items online and pay it through Zest Money. After the payment is done the consumer will be able to pay the same in instalments. The Startup in turn also has its deeper level product integration with leading private banks and lending institution to give the hands-on experience to the consumer.
The company has tied with major online ecommerce portals like Amazon, Flipkart, Zefo and also with major manufacturing companies like Xiaomi.
On the other hand Xiaomi is looking to encapsulate the low hanging fruit of Digital Payments now and has been aggressive on the front. Recently the company has also funded Krazybee with $8 Million funds.
See the bigger picture
It all starts when you buy a Mi mobile phone. The manufacturer gives you the free cloud space to store the data and then asks you to use its own app store to download apps. Not just limited to that, its now linking and sharing “MI Id” at the time of registration which may be linked further to your gmail account to further validate it. But the overall idea is to bring in a system in place which eventually would build its own clan of users and decrease the dependability on Google (precisely Android).
Why Xiaomi needs to do all this. Isn’t it doing well in its segment?
We all know what data could bring to an organisation. Eventually users are willing to share information and keep continuing to use the brand they are familiar with. Xiaomi is doing this to bring in more sources of revenue generation to its million of users and is willing to take up the business model of Apple where in right from the device to firmware, software, emails, to service technicians, it owns everything right from scratch. It helps the user to stick for a longer time due to his/her ”Familiarity with the brand”. And eventually, it will help Xiaomi to build barriers to entry for it competition or rivals and build a clan of its own!