Nothing, the London-based consumer tech startup founded by former OnePlus co-founder Carl Pei, has revealed plans to spin off its affordable sub-brand CMF into an independent subsidiary, with India serving as its global headquarters for manufacturing and research & development. The announcement, made on September 25, 2025, includes a $100 million investment commitment over the next three years, projected to generate over 1,800 jobs, and a joint venture with Indian electronics manufacturer Optiemus Infracom Ltd. For tech enthusiasts, investors, and industry observers searching Nothing CMF spin-off, CMF India headquarters, or Nothing Optiemus JV 2025, this strategic move follows Nothing’s recent $200 million funding round at a $1.3 billion valuation and aims to position CMF as “India’s first truly global consumer tech brand,” targeting the budget segment with products like smartphones, earbuds, and wearables.
The spin-off allows Nothing to focus on premium innovation while CMF operates autonomously, mirroring strategies by Chinese giants like Xiaomi with POCO and Oppo with Realme.
The Spin-Off: CMF as a Standalone Powerhouse
Launched in 2023 as Nothing’s entry into the affordable market, CMF (standing for “Color, Material, Finish”) quickly gained traction with products like the CMF Phone 1 (priced under $200) and Buds Pro, capturing over 2% market share in India’s Q2 2025 smartphone shipments—the fastest-growing brand in the country. The spin-off establishes CMF as a separate entity with its own leadership and operations, while Nothing retains a majority stake.
Key aspects:
- Global HQ in India: Noida, Uttar Pradesh, will host manufacturing and R&D, leveraging India’s talent pool and supply chain.
- Joint Venture with Optiemus: The partnership will handle production, with Optiemus (which manufactures for Nothing) investing in the JV to scale output.
- Investment and Jobs: $100 million over three years, creating 1,800+ roles in engineering, design, and operations.
Carl Pei, Nothing’s CEO, stated on X: “CMF has been well-received since launch two years ago. With our end-to-end capabilities, we are uniquely positioned to build it into India’s first truly global smartphone brand.” The announcement came after a meeting with India’s Electronics and IT Minister Ashwini Vaishnaw, aligning with the “Make in India” initiative.
| Aspect | Details | Strategic Goal |
|---|---|---|
| Ownership | Nothing Majority Stake | Autonomy with Oversight |
| HQ Location | Noida, India | Global Manufacturing Hub |
| Investment | $100M (3 Years) | 1,800+ Jobs Creation |
| JV Partner | Optiemus Infracom | Production Scaling |
CMF’s Rise: From Sub-Brand to Global Contender
CMF entered the market in 2023 with earbuds and a smartwatch, followed by the CMF Phone 1 in 2024, which sold over 1 million units at under $200. Its focus on “clean design” and “trusted quality” has resonated in budget segments, with IDC reporting 85% YoY shipment growth in Q2 2025. The spin-off enables CMF to target value-conscious consumers independently, avoiding dilution of Nothing’s premium image.
- Product Lineup: Smartphones (e.g., CMF Phone 2 Pro at ₹15,999), earbuds, and upcoming over-ear headphones (teased for September 29, 2025).
- Market Performance: Over 2% share in India’s Q2 2025 smartphone market; strong in earphones and wearables.
- Leadership: Himanshu Tondon, ex-Xiaomi POCO VP, appointed as CMF’s VP of Business in August 2025.
Navkendar Singh, IDC India Associate VP, noted: “This makes sense for CMF’s budget focus, while Nothing targets mid-premium ($400-$600).”
Broader Context: Spin-Offs in the Consumer Tech Landscape
Brand spin-offs are a proven playbook in tech, allowing companies to address diverse price points without cannibalizing premium lines. Chinese firms pioneered this—Xiaomi with POCO, Huawei with Honor (sold in 2020), and Oppo with Realme—while Nothing’s move mirrors the strategy. With India’s smartphone market at 150 million units annually, CMF’s budget positioning (under $200) taps the $100-300 segment, projected to grow 15% YoY.
- Nothing’s Portfolio: Premium focus on Phone (2a) series and Ear (open) buds; $1.3 billion valuation post-$200M raise.
- India’s Role: Nothing’s strongest market (2% share, 85% YoY growth); Optiemus JV aligns with “Make in India.”
Pei emphasized: “Global brands choosing India is a testament to the ecosystem.”
Challenges and Future Outlook
While promising, CMF must navigate intense competition from Realme and POCO in budget segments, plus supply chain hurdles. The $100 million infusion and 1,800 jobs signal scale, with Pei eyeing CMF as a “global consumer tech brand.” Upcoming launches like the Headphone Pro on September 29 could test the independent model’s momentum.
Conclusion: CMF’s Spin-Off Signals Nothing’s Indian Ambition
Nothing’s CMF spin-off with India as HQ is a savvy play to conquer budget tech, backed by $100 million and Optiemus muscle. As Pei builds “India’s first global brand,” it could redefine value innovation. For Nothing fans, it’s exciting evolution—will CMF outshine POCO? The market’s verdict awaits. Tech crunch
