Micromax Story – Rise & Fall of Largest Indian Smartphone Company

Micromax is an Indian electronics brand that was founded by Rahul Sharma in 2000 and was valued over 21000 in 2015. However, the startup soon saw the downfall and lost more than 93% valuation.

By Soha Habib Jul 29 2021 1:06PM 484 Read
Micromax – Downfall from INR 21000 CR to 1500 CR in 5 Years

Micromax or Micromax Informatics is an electronics company that manufactures & markets Smart phones, laptops, tablets, Air Conditioners, LED TVs, refrigerators, washing machines, and other home appliances. It has been one of the largest companies that produce low priced smartphones in India. It was founded by Rahul Sharma and Rohit Patel in the year 2000 and is an international electronics company. They began to sell phones in the year 2008 and also own a company YU Televentures.

Fun Fact : In the year 2014, it was considered the tenth largest smartphone seller in the world.

Micromax Story – Key points

  • Company Name : Micromax Informatics
  • Founded : 29 March 2000
  • Founders : Rahul Sharma and Rohit Patel
  • Headquarters : Gurugram, Haryana, India
  • Type of Sector : Private
  • Website : www.micromaxinfo.com
  • Revenue : $3.1 billion

Micromax Informatics – About the Startup

In the year 2014 Micromax became one of the most reselling companies to deliver phones in India. In the same year, it was also recognized as the first Indian company to sell phones in Russia. It launched a new sub-brand "IN" in the year 2020. The company Micromax is known for selling mobile handsets such as feature phones and smartphones, Consumer electronics such as televisions, washing machines, refrigerators, and air conditioners.

Fun Fact : Micromax has over three manufacturing factories, located in Bhiwadi in Rajasthan, Rudrapur in Uttarakhand, and Telangana.

YU Televentures- A Brand Owned by Micromax

YU Televentures was launched on 18th December 2014 as a combined venture of both Micromax Informatics and Cyanogen. Later it was declared as the sub-brand of Micromax as was turned to the official website of Micromax. The company provides a variety of phones such as YU Yureka, YU Yureka Plus, YU Yureka Note, YU Yureka S, YU Yuphoria, YU Eutopia, YU Yunicorn, YU Yunique, YU Yunique Plus, and many more. It also produces health devices and many other products.

Micromax Startup Story – Founder Rahul Sharma

Rahul Sharma along with Rohit Patel founded Micromax in the year 2000. He is the CEO of the electronic company Micromax Informatics. He has a bachelor's degree in Commerce which he pursued from The University of Saskatchewan, Canada. He also has a Mechanical engineering degree from Rashtrasant Tukadoji Maharaj Nagpur University.

Micromax Startup Story Micromax Founder Rahul Sharma

Micromax Core Team

  • Vikas Jain - The founder and the business director of Micromax Informatics
  • Sumeet Arora - The Chief Development Officer
  • Rajesh Aggarwal - M.D. at Micromax Informatics

Note : About 20,000+ people are employed at Micromax.

Micromax Success Story - Brand Name and Logo

  • Brand Name : The letter "M" of Micromax is formed by the hand knuckles and an inverted "i "of Micromax.
  • Logo : It has an orange punch logo that depicts a human hand. The logo was developed with Talent house India through crowdsourcing taken by Micromax. Participating Individuals had to make their icon and submit. Among the participants, Eric Atkins was the winner.
  • Tagline : Micromax launched a tagline named "Nuts": "Guts": "Glory"

Micromax – Funding, and Investors

The company Micromax Informatics is being funded by several investors including:

  • Madison India Capital
  • Sandstone capital
  • Madison India Capital
  • Sequoia Capital India
  • TA Associates
InvestorsAmountDateRound
--April 2017Secondary
Sequoia Capital$43 millionSeptember 2010Late VC
TA associates$45 millionJanuary 2010Late VC

It has raised a total of $88 million in funds. It's a fundraised on the year 2017. It has over 4 investors & the recent ones include- Madison India Capital and Sandstone Capital.

Micromax Startup – Competitors

  • Samsung
  • Lava
  • MI
  • Nokia
  • HFCL
  • Vivo
  • One Plus
  • AGC
  • AMP

Micromax Startup – Future Plans

  • It has the motive to successfully overcome all the technical complications and provide life easing solutions
  • It has a motive to make Micromax one of the trusted company
  • It also has plans to develop new and innovative advanced technological gadgets

Micromax Startup – Revenue

YearAmountProfit
2014-2015Rs. 10,451 croreRs. 364 crore
2018-2019Rs. 2443 croreRs.145 crore

Micromax Story – Challenges

Micromax is one of the advanced mobile brands but it has also faced a lot of problems to climb the ladder:

  • It is often referred to as a Chinese brand. Micromax was highly inspired by Chinese mobile companies. Chinese mobile brands such as Vivo, Xiaomi, Oppo, Gionee are highly sold in India.
  • The launch of Reliance Jio 4G is one of the major reasons for the downfall of Micromax. It primarily launched phones on 3G and 2G spheres, the mistake of not venturing into 4G spheres made a massive downfall to the company.

Micromax Success Story – Brand Endorsements

In the year 2013 one of the highest-paid Hollywood actors was the brand ambassador of Micromax's model Canvas Turbo A250 which was one of the first flagship phones produced by Micromax. Bollywood celebrities like Twinkle Khanna and Akshay Khanna have also endorsed this brand.

Micromax- Recognitions and Awards

  • V& D 100 Awards-Micromax was acknowledged as the Emerging Company of the year.
  • 2017- The founder of Micromax Informatics was acknowledged with The Transformational Business Leader of The Year.
  • In the year 2014, it was considered the tenth largest smartphone seller in the world.
  • In the year 2014 Micromax became one of the most reselling companies to deliver phones in India.
  • In the same year, it was also recognized as the first Indian company to sell phones in Russia

Micromax – Brand that Beat Obstacles

Micromax Informatics or Micromax is considered to be one of the most selling brands in India. It creates affordably priced feature phones. It now has a strong footing and also launched a subsidiary brand name YU Televentures. It is one of the companies that have defeated several brands including Samsung.

Soha Habib
Soha Habib View More Posts

With over a decade of writing obituaries for the local paper, I have a uniquely wry voice that shines through the newest collection of essays on the importance we place on a legacy. I see myself in the top management in some marketing/advertising firm. BTW, my primary domain is Humanities & I also like geography, exploring, travelling, & food.

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