Since its debut in India earlier this year, LeEco has quickly made its mark with interesting product offerings and its content package. But a recent report claimed that all was not well as the Chinese company is currently facing severe cash crunch that could derail its impressive growth. While questions were raised how it will affect LeEco’s business in India, the company revealed that it remains committed to the country. Also Read - Struggling LeEco plans smartphone with 18:9 aspect ratioAlso Read - LeEco plans smartphone with 18:9 aspect ratio: Report
“India represents the future and its user value may surpass China in a few years, Jia Yueting, LeEco co-founder and chairman said. “No matter how hard it is to crack the India market, we will try our best to grasp the opportunity there. This is a big claim and goes on to prove that the company is not ready to give up on the market despite the dire scenario. Another way of looking at this claim could be that LeEco is doing its best to ensure the damning report doesn’t do any damage to its brand image in the country. Also Read - Gionee India operations may be affected amidst financial woes
LeEco (formerly LeTV) has rapidly expanded from its days as a content provider in China. It has quickly expanded into areas like mobiles, mobile accessories, smart TVs and even electric cars. It has since then also ventured into the US market, and has made a couple of acquisitions including an electric car plant in Nevada, and California-based TV maker Vizio.
But the cost of growing so fast is that LeEco seems to have overreached and is now facing a cash crunch. In a recent letter to shareholders and employees, Yueting wrote, “No company has had such an experience, a simultaneous time in ice and fire. We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited. Yueting has now promised to make sensible business decisions aimed at keeping the company profitable and sustainable at the cost of achieving only a modest growth rate. He also pledged to take a massive pay cut that brings his salary down to RMB 1. ALSO READ: LeEco s co-founder reveals that not all is well at the swashbuckling Chinese company
LeEco debuted in India earlier this year, and has since launched a range of products. These included smartphones like the Le 1s, Le Max, Le 1s Eco, Le 2, Le Max2 and smart TVs like Super3 Max65, Super3 65 and Super3 55.
Besides the hardware bit though, the USP of the company’s offering remains content. Its products are preloaded with a subscription-based content membership program. For an annual fee of Rs 4,990, LeEco offers users access to over 3,000 movies, over 3,000 hours of TV shows, 150 live TV channels, and live concerts. They will also get access to over 3.5 million songs, of which around 1.9 million are available in lossless quality. The company was quite active during the recent online festive sales, where it managed to sell over 300,000 smartphones and 3,500 TVs via multiple platforms.