Hardware startup Nothing announced Thursday that it will spin off its budget device line CMF into a fully independent subsidiary, with India serving as its global base for manufacturing and research.
Launched in 2023 with affordable earbuds and a smartwatch, CMF has since expanded into smartphones priced under $200, a segment that dominates India’s market, accounting for over 42% of shipments in Q2 2025, according to IDC. India has become Nothing’s strongest market, where the company captured more than 2% share and grew shipments by 85% year-over-year in the same quarter.
To support the expansion, Nothing is forming a joint venture with Indian original design manufacturer Optiemus, pledging over $100 million in investment across three years and promising to create more than 1,800 jobs. The startup did not disclose the ownership structure of the new venture, nor how much of its recent $200 million Tiger Global-led funding round will be allocated to CMF’s India operations.
“India will play a key role in shaping the future of the global smartphone industry,” said Nothing CEO Carl Pei. “Our joint venture with Optiemus is a key milestone toward building CMF into India’s first truly global smartphone brand.”
The move also follows Nothing’s hire of Himanshu Tandon, former head of Xiaomi’s spinoff brand POCO, as VP of Business for CMF.
Industry analysts say the decision reflects both market opportunity and brand strategy. “CMF has found a strong audience in India’s budget phone and wearables market,” said Navkendar Singh, associate VP at IDC India. “Another driver could be that Nothing wants to avoid having a value-for-money image rub off on its main brand, which is targeting the mid-premium segment.”
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Spinoffs have been a growing trend in the smartphone industry, with examples such as Xiaomi’s POCO, Huawei’s Honor, and Oppo’s Realme. Nothing’s decision positions CMF to compete in one of the world’s largest and fastest-growing smartphone markets while giving the parent company room to focus on premium innovation.
