Nothing to Spin Off CMF Brand

Nothing to Establish CMF as Independent Subsidiary in India

Nothing, a hardware startup, announced on Thursday its plans to establish its more affordable brand, CMF, as a standalone subsidiary.

India has been selected as the headquarters for CMF’s manufacturing and research & development operations.

Initial Launch and Expansion of CMF

CMF was initially introduced in 2023 with the release of earbuds and a smartwatch.

Subsequently, the brand expanded its product line to include smartphones.

Strategic Partnership and Investment

Nothing is collaborating with Optiemus, an Indian original design manufacturer (ODM), to form a joint venture focused on manufacturing.

While the specific ownership details of this venture remain undisclosed, Nothing intends to invest over $100 million over the next three years.

This investment is projected to generate more than 1,800 employment opportunities.

Funding Allocation

Following a $200 million funding round spearheaded by Tiger Global, Nothing has not yet specified the portion of these funds that will be allocated to the establishment of this new venture.

Rationale for Choosing India

The decision to base CMF’s operations in India is strategically aligned with market dynamics.

CMF’s smartphones are priced below $200, a segment that currently dominates the Indian market.

According to IDC data, over 42% of smartphones shipped in Q2 2025 in India fell within the $100-$200 price range.

Market Performance in India

India represents Nothing’s strongest market, currently holding over 2% market share in the smartphone sector.

IDC reported to TechCrunch that Nothing experienced the fastest growth among brands in India during Q2 2025, with an 85% year-over-year increase in shipments.

CEO Statement

Carl Pei, CEO of Nothing, stated, “India will play a key role in shaping the future of the global smartphone industry.

CMF has been well-received by the market since its launch 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.”

Recent Leadership Addition

This move follows Nothing’s recent recruitment of Himanshu Tandon from Xiaomi’s POCO brand, who now serves as VP of Business for CMF.

Industry Trend of Brand Spinoffs

Brand spinoffs have become increasingly prevalent, particularly among Chinese brands.

Examples include Xiaomi’s creation of POCO, Huawei’s sale of Honor, and Oppo’s establishment of Realme as a separate entity.

Industry Analyst Perspective

Navkendar Singh, associate VP at IDC India, commented, “This move makes sense since CMF has found a market in the budget segments in both phones and wearables markets in India.”

He further added, “Another driver could be that Nothing wants to avoid having a value for money rub off on itself coming from CMF, especially as Nothing seems to be focused on the mid-premium end of the market [$400-$600].”