Bin Lin, Co-Founder and President of Xiaomi on his Facebook page announced the launch of Xiaomi money market fund. The app is finally live but it is in beta version, can only be used in Xiaomi devices running developer build in China. The Xiaomi money market fund would yield 3.0584 yuan for every 10,000 yuan in the account. Annual return is 6.4370 percent which is much higher than any bank accounts.
Xiaomi is entering this financial service to compete with the likes of Alibaba and Tencent who already has similar services. The app would allow users to buy money market funds which is being offered by mutual fund manager Efund. Xiaomi’s annual return of 6.4370 percent is much better than the 4.52 percent offered by Alibaba. Also, banks in China only offers 2.5 percent interest currently. Thus, Xiaomi scores huge brownie points in this department.
Xiaomi has more than 100 million strong customer base in China and it makes sense to tap those users as another revenue stream. The company sells devices at near cost and makes money by monetizing the app store and selling other accessories. Thus, wealth management and lending will become a huge source of revenue generation. This would allow the company to sustain while selling products at near cost price which is their USP.
Xiaomi, started as a software company with the launch of MIUI has not entered a lot of different fields. We just hope they do not lose focus on their core business.
Xiaomi Mi Note Natural Bamboo Edition was announced in China and new Xiaomi Mi TV 3 is also coming on March 24.