Nothing, the London-based hardware startup founded by Carl Pei, is restructuring its budget-focused CMF line into a standalone subsidiary, with India set to become the hub for both manufacturing and research. The company announced the move alongside plans to establish a joint venture with Indian ODM Optiemus, committing more than $100 million over the next three years and creating over 1,800 jobs.
Launched in 2023 with earbuds and a smartwatch, CMF has since expanded into smartphones priced under $200. That positioning is a clear fit for the Indian market, where IDC data shows that 42% of phones shipped in Q2 2025 fell into the $100–$200 range. India has also become Nothing’s strongest market, with IDC reporting the company achieved over 2% market share and 85% year-over-year shipment growth in Q2, making it the fastest-growing smartphone brand in the country.
Nothing’s partnership with Optiemus reflects a wider strategy to deepen its presence in India. By making CMF operationally independent, the company appears to be following a path taken by several Chinese manufacturers over the last decade, including Xiaomi with POCO, Huawei with Honor, and Oppo with Realme. Spinning off brands allows companies to target different price tiers and markets while building distinct identities.
CEO Carl Pei framed the move as both a strategic and symbolic step, positioning CMF as a brand that could grow beyond India while being built from the ground up within the country. “India will play a key role in shaping the future of the global smartphone industry,” Pei said. “Our joint venture with Optiemus is a key milestone toward making that vision a reality.”
The shift also follows key leadership changes. Last month, Nothing hired Himanshu Tondon, formerly of Xiaomi’s POCO, as Vice President of Business for CMF — a signal that the company is betting on experienced leadership to replicate the success of other spin-offs in the crowded mid-range smartphone sector.
Nothing’s decision comes shortly after it raised $200 million in funding led by Tiger Global, though the company did not specify how much of that capital will be directed toward CMF’s expansion. With India serving as both manufacturing base and primary market, the company is hoping CMF will not only strengthen its foothold in the competitive budget smartphone segment but also emerge as a brand with global ambitions.
