Xiaomi is closing down its financial services business in India, sources say

IT House October 28 news, according to TechCrunch, citing people familiar with the matter, reported that Xiaomi is gradually closing its financial services business in India.

Xiaomi recently removed its Mi Pay and Mi Credit apps in India from the local Play Store and its own app store, the report said. Three years after its launch, Mi Pay is no longer listed as an approved app by the National Payments Corporation of India (NPCI) regulator, TechCrunch said.

IT Home has learned that Xiaomi has been investigated and funds frozen by the Indian government this year. In May of this year, Indian law enforcement seized about 4.8 billion yuan in bank assets of Xiaomi Technology India Pte Ltd, saying it found that the company illegally sent money to three foreign entities, including a Xiaomi Group entity, “under the guise of royalties”. Xiaomi has denied any wrongdoing, saying its “royalty payments and statements to the bank are both legal and true.”

Xiaomi then filed a lawsuit in the High Court in the southern Indian state of Karnataka against the decision of India’s financial crime agency.

In August this year, Xiaomi Group partner and president Wang Xiang said at the financial report analysis meeting that Xiaomi is actively responding to the Indian government’s investigation, and there is currently no preparation for provision, because Xiaomi’s business in India is still in normal progress. More than $700 million in frozen funds have been successfully unfrozen.

Wang Xiang said that some of the frozen funds are still being negotiated, and Xiaomi’s business progress and factory production in India are also in progress. Xiaomi will earnestly and actively conduct candid communication with relevant departments of the Indian government, and will also appeal through the judicial system.