From that to switching to Xiaomi talk to us about that journey that made you. So when I was hugely fascinated about mobile as a category when I was still at Jabong I read a blog. I don't remember which blog was this, but I read a blog about a small startup from China. Yeah. Now, remember this 2013 beginning when somebody wrote this blog saying it is one company the smartphone space on the mobile space that you should call for is Xiaomi and the person mentioned two reasons. I still remember that. The first thing he said that most of the companies in the mobile space are either focusing on hardware or on software and show me the only company that he knows of is focusing on both maybe the second company after maybe but amongst the new startup's new startup. This is only company second thing that the person mentioned was the fact that xiaomi was doing things so differently, the xiaomi was selling products online through its own e-commerce platform MI.com. Xiaomi was not spending any money in marketing in a category, which is very competitive and which is it is believed that one of the big levels of success is marketing expense and the person spoke about the whole philosophy of xiaomi and how he felt it was different from all other startups in the mobile space or mobile related space and this is 2013. The company was only three years old and for the first one and a half year company was just building the foundation and not launch any products shouldn't be the only one and a half years since the company launched its first product. So that person said this is the company to watch out for.hmm. And I got fascinated. I asked some of my friends they knew about Xiaomi. Most of the people had no idea then I reached out to Naveen who is the co-founder and CEO of InMobi. Yeah,Naveen and Amit , it was the co-founder they are great friends and mentor to me in life. Every time I have a problem was I need a solution I would go to them. They're one of the few people that I would go and take advice from so I reach Both of them. They said, of course, we know Xiaomi and LeiJun founder and chairman CEO of Xiaomi and they introduced me to Bin so xiaomi has two main founders one co-founders, LeiJun who is the president. Sorry who's is the CEO and chairman of the company and Ben who's a co-founder and president of the company, so they said maybe you should talk to Ben because Ben speaks better English and LeiJun does not speak that great he may not have time so we should talk to Ben and for about a year. Here Ben and I we were just in touch over emails and calls once in a while once in a month once in 45 days will get on a call. He would ask me more about India business of building an e-commerce auditioning up my understanding of Indian e-commerce. And I would ask him more about Xiaomi without any expectation that you would help each other. We would ever work together in life then in end 2013 and I was in China on a backpacking trip. I met bunch of entrepreneurs, but I also happen to call Ben I'm in Beijing would love to catch up over coffee. That was the first time gonna Actually physically met before that. We were only in touch over calls and emails 2014 beginning I exited Jabong then I was trying to figure out what to do in life, but I was fascinated by mobile as a space or smartphone ever space, and I want to do something in this area. So Ben reached out to me a few months after that saying hey, you know, you want to do something in mobile space. You want to start our India business. Would you be keen to start our India business? We spoke before about 30-40 days. And then I thought it was a great opportunity. So I decided to join Xiaomi. Waah.And and what made you think at that time? There were so many mobile phone providers in India. Yes totally 300. I counted one day when I joined more than three hundreds more than 300 smartphone brands in India. Yeah, a lot of them. You wouldn't even know name because many of them were city-specific or a region specific yet. They were going to China buying from somewhere putting their logo and selling it here over 300 brands. So what was it thesis why? Xiaomi had a chance, you know, I didn't think initially I thought it was just exciting. Okay, it was something I believe that xiaomi was making great products and it would succeed but initially when I went and spoke to a lot of people they said this can never work. For many reasons I spoke to many experts in this domain people from telecom background. I spoke to many tech CEOs people that I know who are my mentors I would say by large eight or nine people out of ten said it was a disaster the strategy it would never succeed many of them also advised me not to join Xiaomi some people even after joining Xiaomi advice that before it becomes public that you joined Xiaomi. You should probably think of leaving. Public yeah, then you can't leave you guys so why did people say including some of the CEOs that he could never succeed this and it is a flawed strategy at that point of time six percent of the smartphone market was online. Mmm, and we were thinking of going online and 94% was offline. And the way everybody was selling for spending a lot of money on marketing and distributing millions of dollars being spent every single even small brand taking some cricket sponsorship spending somewhere. So people said the way to send smartphones and mobile phones and other things iot devices is you sell offline through lakhs and lakhs of shops and you spend a lot of money marketing. You don't have team. I was only team member. You don't have marketing spends you're thinking of attacking a small segment, which is exposed on the market. Why would he succeed it is a difficult thing to pronounce Xiaomi. Nobody even today till knows how to pronounce Xiaomi people think of as an mro in people say nobody knows what xiaomi is. Why would somebody come and buy your product? Nobody knows what the product is so people said it's a disaster model. It will never succeed. Hmm, and I actually thought me I was very naive. A lot of times I used to have this self-doubt that maybe people are right. Maybe we will never succeed. Maybe it is a biggest mistake that I'm making maybe we'll have to shut down shop after six months. So the first one year or six months was only about survival that somehow I used to hope that we should be here after six eight months one year because we can prove these people wrong and that yes, maybe we are not completely wrong. Maybe we were wrong to some extent we will not completely wrong and you've survived. Talk to us about that phase 0 to 1 the first year, what was the target that It what did you work towards? Our first Target was very simple first business plan that we wrote or I wrote and presented to the board and which got approved is the only two things that business plan we will sell 10,000 phones a week. Okay, and initially only 10,000, later on, became ten thousand a week the initial business plan was to sell 10,000 phones and steady-state will have 10 people. Like what's the why 10000 phones we had no Benchmark. Mmm. July when we launched July end, so I joined the company in May and then for two three months I will be working in stealth mode June around sometime soon. We took our Facebook page live that was only known asset of Xiaomi India our Facebook page by July and August beginning. We had 10,000 people following our Facebook page. So we said they 10,000 people know about Xiaomi products. Hmm. The reason why a business plan said 10,000 phones because we said at least 10,000 people can come. Buy a product. Hmm. So a simple business plan goes find this 10,000 people sell them one phone each.This was a simple business plan. Yeah 10 people because we said even if a business grows up, maybe eventually we need one person for after there is one person for marketing one person for customer care who very simple thing to you. So we said we will have ten eight nine functions. Plus I will be there. So you have 10 people selling 10,000 phones initially, and then maybe hopefully eventually ten thousand phones in a week time. That was the simplest. And easiest business plan that we had written and that got approved by a board saying OK at least deliver this much. It's fast and then you raised a seed round or something like that or what house that is it? No, no tell you a hundred percent subsidiary of Xiaomi but Head say you have this much money go prove or work in these kind of situations. So yeah, so they give us some small amount of money. Yeah and the understanding with the board and CEO was that we can be lost making for a year. He was like 2014 because in 2014 was sure just you were setting it up and it was you were present for five months. But this year 2016 is the only year when you can make losses and that was expectation. Second year onwards 2017. You have to be profitable which means you have to make money locally. We can keep investing if required from a long-term strategic bit like you're setting up a factory setting of R&D Center to sitting up in few other things for do strategic things. We can think of putting in money but it shouldn't happen that for day-to-day running operations. You are subsidizing those operations that you have to earn money here and show that you are profitable and then you do this and these are single digit margins, right Xiaomi all over. In fact, we have a board resolution that our constitution of the company says we can never make more than five percent profit. margin. Okay from any of our hardware products Why is that because we believe in a concept called is honest price. So we said we'll cut them all possible cost like marketing distribution working capital inventory cost and we'll pass them a benefit to user without keeping a profit buffer margin for ourselves got it. So what other spend on marketing you spend on the quality of the phone? So it's give better hardware better cameras exactly right? So you met you're someone says show long back a year it's just that's great. So then how long did it take to hit your 10K? Within two weeks with a week.Really. How do that our first sale we had was in Flipkart our partner platform. Okay, and we are exclusive to Flipkart out at that point of time here for the first ten thousand phones about half a billion people turned up and remember this. Yeah.It was the first exclusive launch. Flipkart crash for the first time in the history of Flipkart this when we said 10,000 is a less number. Let's start with a high reaches 10,000 a week early goes 10,000. Whatever time it takes then we said every week we should do 10,000. And then within a few months by the Diwali of 2014 we are saying can we do a hundred thousand of the week, especially during the Diwali week? And that was the first time we hired a charter flight to bring it the hundred thousand phones plus power bank plus accessories at one go and with a big achievement for us hiring a full plane just full of Xiaomi phones and products to bring it to India. So the 10K phones I want to go back to that because that was a pivotal moment in just had Had anyone sold online exclusive launch at one go in one day. I know even launched phones online and there was one brand before us because focusing on online, which is Motorola got it. Okay, but I don't think Motorola. I'm not sure I can check the numbers. Like they would have never launched sold 10,000 phones within seconds. I remember like one of the founders of one of our portfolio companies said I tried ordering the got sold out in a matter of minutes or seconds here. So the second sale first sale was in Flipkart crash here second sale, but this time they created. It happened. They created a new tech platform only to handle a sale flash and the say I was there at Flipkart office within two seconds showing other stock. We had another 10,000 units coming in and I thought the Flipkart again crashed because how can everything also go out of stock in two seconds? Yeah, and Hugo was a CTO of the company at that point of time. So I turned to Hugo and said something wrong has happened. He said let me check. He came back within minutes. He said nothing wrong has happened. Platform did not crash actually. It was actually out of stock in two seconds. So that was the craze at the point of time.