Xiaomi closes its financial services business open in India

Xiaomi closes its financial services business open in India

Chinese smartphone maker Xiaomi has closed its financial services business in India four years after the launch, a Xiaomi India spokesman said on Friday.

 

“As part of the annual strategic assessment activities and in response to our growing focus on our core business services. We have shut down Mi Financial Services in March 2022,” a company spokesperson said.

 

The company’s Mi Pay app, which allows users to pay and transfer money. It is no longer listed as a recognized third party Unified Payments Interface (UPI) app on the National Payments Corporation of India (NPCI) website.

 

NPCI, the industry body that oversees India’s state-sponsored peer-to-peer payment network. Commonly known as UPI, declined to comment.

 

Xiaomi recently pulled Mi Credit, which connects smartphone users to credit for quick loans and the Mi Pay app from the local Play Store and its own app store, TechCrunch reported early Friday.

 

In India, Xiaomi’s strongest market outside of China, the company is under government investigation for evading tax regulators.

 

in April India’s federal financial crimes agency freezes $676 million worth of Xiaomi’s assets, accusing the company of illegally sending funds to foreign entities through royalties.

 

The Chinese smartphone group, which has denied any wrongdoing, has said the action “effective stop” Operations in key Indian markets.

 

Many Chinese companies are struggling to do business in India due to political tensions following the 2020 border clashes.

 

India has banned more than 300 Chinese apps since then. This includes the popular app TikTok and tighter rules for Chinese companies investing in India.

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