- Manu Jain, who took credit for Xiaomi Corp (OTC: XIACF) (OTC:XIACY) set up and scale business in India, has left the company, joining a long list of high-profile departures at the local unit that is increasingly losing market share to rivals, including Samsung Electronics Co, Ltd (OTC: SSNLF).
- Jain, who led the India business for seven years and held a global VP role, did not disclose any reason behind his departure. Still, he has been pitching investors ideas for an EV startup for several months, TechCrunch reports.
- Jain had been telling many industry figures for several quarters about his plans to leave the venture.
- Xiaomi entered the Indian smartphone market in 2014 with its more affordable phones.
- Within quarters, Xiaomi made a dent in the market, undercutting rivals Samsung, OnePlus, Oppo, and Vivo becoming the top smartphone vendor in India, a crown it no longer holds.
- Jain scuffled with a big blow following escalating geopolitical friction between China and India.
- Jain was likely for a promotion to a higher global role, but the firm changed its mind.
- India’s Enforcement Directorate also summoned Jain, where according to Xiaomi, he faced threats of “physical violence” in a tax dispute issue.
- India’s Enforcement Directorate alleged the second-largest smartphone vendor of “illegal remittances” and seized ~$730 million.
- India’s anti-money laundering and foreign exchange crime division alleged Xiaomi’s Indian subsidiary of sending $55.51 billion ($725 million) of foreign currency payments disguised as royalties “on the instructions of their Chinese parent group.”
- Amid the tension at its India unit, several key Xiaomi executives, including Raghu Reddy, Xiaomi India’s business head, have left the firm in recent quarters.
- Price Action: XIACF shares traded lower by 6.92% at $1.59 on the last check Monday.
Mullen Files Lawsuit Against Large Stock Brokerage Firms, Including TD Ameritrade, Charles Schwab, National Finance Services And Others
CEO David Michery stated, "I am extremely frustrated that so many of our shareholders have suffered losses that we believe were caused in large part by unlawful trading activities in our stock."
