Nothing Spins Off Affordable CMF Brand, Taps India for Manufacturing and R&D
In a strategic move to expand its presence in the affordable smartphone market, London-based startup Nothing announced on Thursday that it plans to spin off its CMF brand into an independent subsidiary with India serving as its operational headquarters for manufacturing and research and development.
According to sources, Nothing has partnered with Indian Original Design Manufacturer (ODM) Optiemus to create a joint venture for manufacturing. The company aims to invest over $100 million in the next three years, while creating more than 1,800 jobs. However, details on the ownership structure of this venture remain unclear.
Nothing's decision to choose India as CMF's operational headquarters makes sense given its strong market presence and favorable pricing conditions. CMF smartphones have been priced under $200, which is the dominant category in India, with over 42% of phones shipped in Q2 2025 falling within this price range, according to IDC.
"We are excited to take this step towards creating a more sustainable and accessible technology ecosystem," said Nothing's CEO, Carl Pei. "By partnering with Optiemus and leveraging India's manufacturing capabilities, we aim to make high-quality devices available at affordable prices."
Nothing first launched CMF in 2023 with a pair of earbuds and a smartwatch. Since then, the brand has expanded its product lineup to include smartphones.
India has been Nothing's strongest market, with over 2% market share in smartphones, according to IDC. The country's favorable business environment, skilled workforce, and existing manufacturing infrastructure make it an attractive location for companies looking to set up shop.
The spin-off of CMF as a separate entity will enable the brand to operate independently, allowing Nothing to focus on its core products while expanding its reach into new markets.
"This move demonstrates Nothing's commitment to making technology more accessible and affordable," said Anshul Jain, Managing Director at Optiemus. "We are thrilled to partner with Nothing and contribute to the growth of the Indian tech industry."
As CMF continues to grow as a standalone brand, it will be interesting to see how the company navigates the competitive smartphone market in India and beyond.
In related news, Nothing's recent $200 million funding round led by Tiger Global has provided the necessary capital for this ambitious venture. However, details on how much of this investment will go towards setting up the new joint venture remain unclear.
The spin-off of CMF is expected to have a positive impact on India's economy, creating jobs and stimulating innovation in the tech sector. As the company continues to expand its presence in the country, it will be worth watching how CMF navigates the complex landscape of affordable smartphones and whether this move pays off for Nothing and its partners.
Nothing did not provide further details on the timeline for the spin-off or the expected revenue growth from CMF's new manufacturing and R&D operations.
*Reporting by Techcrunch.*
