Valuation game: India’s Micromax Nowhere Close To China’s Xiaomi
Home-grown mobile handset maker Micromax Informatics, which sold as many or even more smartphones in the past couple of quarters than global smartphone leader Samsung in India, is reportedly seeking a valuation of $3-3.5 billion for a potential stake sale.
The valuation, which is close to three times its annual sales, is too low compared to its global competitors who are trying to capture a slice of Indian smartphone market, the fastest growing, where Micromax has already established its leadership. China’s Xiaomi, which has entered India only a few quarters ago, was valued at $45 billion in its last round of funding in December 2014, a jump from $4 billion in June 2012.
Read more: Micromax.