Chinese company Xiaomi financial services business closed

Chinese smartphone maker Xiaomi has closed its financial services business in India after four years of its launch. A spokesperson of Xiaomi India gave this information on Friday. “As part of the annual strategic assessment activity and to focus on our core business services, we have closed MI Financial Services.
With the company's Mi Pay app, users used to get the facility of bill payment and fund transfer. It has now been removed from the list of Third Party Unified Payments Interface (UPI) apps on the website of the National Payments Corporation of India (NPCI). Xiaomi has pulled both its apps Mi Credit and Mi Pay from the local Play Store and its App Store, which connects users with lending firms for quick loans.
Xiaomi's strongest market outside China is India. An investigation is also going on in the matter related to tax on the company. In April, India's Federal Financial Crimes Agency froze Xiaomi's assets worth $676 million. The company was alleged to have illegally sent money to foreign entities in the form of royalty payments. The Chinese smartphone, however, denied any wrongdoing.
Many Chinese companies are facing trouble doing business in India due to political tensions since the border turmoil in 2020. The Indian government has since banned over 300 Chinese apps, including popular apps like TikTok, citing security concerns. The government has also tightened rules for Chinese companies investing in India.