Nothing to Establish CMF as Independent Subsidiary Headquartered in India
Hardware startup Nothing announced on September 24, 2025, that it will spin off its affordable device brand, CMF, into a standalone subsidiary. The new entity will be headquartered in India, serving as the central hub for manufacturing and research and development activities. Originally launched in 2023 with earbuds and a smartwatch, CMF has since expanded its portfolio to include smartphones. The brand focuses on delivering budget-friendly consumer electronics targeted primarily at price-sensitive markets.Joint Venture with Indian ODM Optiemus to Drive Manufacturing
Nothing revealed it is partnering with Optiemus, an Indian Original Design Manufacturer (ODM), to establish a joint venture dedicated to CMF’s manufacturing operations. While the ownership structure of this collaboration remains undisclosed, the startup plans to invest over $100 million within the next three years, aiming to generate more than 1,800 jobs locally. Based in London, Nothing raised $200 million in its latest funding round led by Tiger Global. However, the company did not specify how much of these funds will be allocated toward the new CMF venture.Strategic Focus on India’s Growing Mid-Tier Smartphone Market
India presents a strategic opportunity for CMF’s growth given its dominant mid-range smartphone segment. According to IDC data, over 42% of phones shipped in India during Q2 2025 were priced between $100 and $200 — the primary price bracket targeted by CMF’s smartphones. Nothing has already established a foothold in the Indian market, capturing more than 2% of the smartphone market share. IDC reports that Nothing was the fastest-growing smartphone brand in India during Q2 2025, with shipments increasing 85% year-over-year.“India will play a key role in shaping the future of the global smartphone industry. CMF has been well-received by the market since we launched it two years ago. With our end-to-end capabilities, we are uniquely positioned to now build it into India’s first truly global smartphone brand. Our joint venture with Optiemus is a key milestone toward making that vision a reality,” said Carl Pei, CEO of Nothing.Leadership Strengthened by Industry Veteran
In a strategic talent acquisition, Nothing recently appointed Himanshu Tondon, formerly of Xiaomi’s POCO brand, as Vice President of Business for CMF. This hire underscores the company’s commitment to scaling CMF’s operations and market presence in India and beyond.FinOracleAI — Market View
Nothing’s decision to spin off CMF as a separate entity headquartered in India aligns with broader industry trends favoring localization and cost-effective manufacturing. The partnership with Optiemus provides a robust infrastructure to support scalable production, critical for competing in the highly competitive sub-$200 smartphone segment.- Opportunities: Expansion into India’s rapidly growing mid-tier smartphone market; potential for CMF to become a recognized global brand; significant job creation and investment boosting local ecosystem.
- Risks: Intense competition in price-sensitive segments; operational challenges in joint venture execution; dependency on ODM partner’s capabilities and market dynamics.
Impact: Positive. The move enhances Nothing’s strategic positioning in a key emerging market, leveraging local manufacturing and R&D to scale CMF’s presence effectively.
