Hardware startup Nothing announced on Thursday that it plans to make its affordable device brand, CMF, an independent subsidiary. India will serve as the headquarters for both manufacturing and R&D for the new company. Nothing first launched CMF in 2023 with a pair of earbuds and a smartwatch and has since introduced smartphones under the brand. The company is partnering with Indian original design manufacturer Optiemus to create a joint venture for manufacturing. While the ownership structure was not disclosed, Nothing said it aims to invest more than $100 million over the next three years, which will create over 1,800 jobs.
This decision follows a $200 million funding round led by Tiger Global. Nothing’s CEO Carl Pei stated that “India will play a key role in shaping the future of the global smartphone industry” and that the joint venture with Optiemus is a “key milestone” toward making CMF “India’s first truly global smartphone brand.”
India as a Strategic Hub for CMF
Nothing’s decision to choose India as CMF’s operational headquarters is a strategic one. CMF’s smartphones are priced under $200, and this is the dominant category in India, with over 42% of all phones shipped in Q2 2025 falling into that price range. India has also been Nothing’s strongest market, where the company holds over 2% market share in smartphones. According to IDC, Nothing was the fastest-growing brand in the country in Q2 2025, with 85% growth in shipments year over year.
The company recently hired Himanshu Tandon from Xiaomi’s spinoff brand POCO to be the new VP of Business for CMF, a move that signals the company’s serious intent to compete in the market.
Brand spinoffs have become increasingly common in the last decade, with examples including Xiaomi’s POCO and Oppo’s Realme. According to an analyst from IDC India, this move makes sense for Nothing because CMF has already found a market in the budget segments of both phones and wearables in India. The analyst also suggested that the move allows Nothing to avoid having the “value for money” reputation of CMF rub off on its own brand, especially as Nothing appears to be focusing on the mid-to-premium end of the market, with phones priced from $400 to $600.
What The Author Thinks
This move is a smart, strategic decision by a smaller company like Nothing to compete with massive rivals. By creating a separate brand for the budget market, Nothing can avoid diluting its own premium, design-focused identity while still capitalizing on the explosive growth in India’s affordable smartphone segment. This “two-brand” strategy, which has been successful for Chinese companies, allows Nothing to be a player in multiple price tiers without confusing consumers. The decision to make CMF an independent entity with its own R&D and manufacturing in India is a clear signal that Nothing is thinking long-term about its place in the global market and its strategy to secure a dedicated user base in a key region.
Featured image credit: Heute
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