Karbonn to invest up to $3 million in startups

Indian smartphone maker Karbonn Mobiles plans to invest up to $3 million each in startups as a way to build an ecosystem of apps and services for consumers, which will plug into its emerging portfolio of smartphones in the entry-to-mid price segments. Karbonn to invest up to $3 million in startups

The Delhi-based handset maker is taking after rival and largest local brand Micromax, which is investing millions into an ecosystem of startups whose features get integrated into the company’s smartphones, providing exclusivity to its consumers. Karbonn to invest up to $3 million in startups

“We’re evaluating from how the developers will be able to bring in the necessary differentiation and relevance to our consumers,” executive director Shashin Devsare said.

“Some of the startups that we’re looking at are in India and China,” he added without divulging details.

Karbonn has identified several startups for exploratory talks but has not decided on the number of such startups for investments, which will depend on the specialisation, product or service that the development team can bring to the end consumers. Karbonn to invest up to $3 million in startups

It may look at a model where it would get into a strategic partnership launch a product or service, let consumers usage build and provide feedback, which goes back to the developer for further fine tuning, and then proceed with requisite investment.

Handset makers in India are increasingly trying to deliver differentiation to consumers, who are now buying smartphones with high quality specifications and features available at low prices from Chinese entrants such as Xioami, Meizu and Gionee among others, in the back drop of economies of scale pushing down smartphone prices globally. Karbonn to invest up to $3 million in startups

Analysts say in a hyper competitive and cluttered smartphone market, where hardware has become commoditised, differentiation on services and native apps will draw and retain customers.

According to import data with ET, the company imported about 45,000 semi-knocked down smartphone units in May and June..