Nothing sub-brand CMF is separating from its British parent company to operate as an independent smartphone manufacturer headquartered in India, Nothing founder and CEO Carl Pei announced on September 21.
Key points
- CMF is separating from Nothing to operate as an independent smartphone company based in India.
- Indian shareholders will hold majority ownership, with domestic engineering teams directing hardware and thermal development.
- Nothing retains a minority equity stake and will continue providing Nothing OS and global supply-chain access.
- CMF has set a long-term commercial target of shipping 100 million smartphones each year.
The structural transition shifts majority ownership and product development to India, allowing the budget-focused brand to operate autonomously while maintaining engineering partnerships with London-based Nothing.
Local Ownership and Engineering in India
Under the new corporate structure, Indian shareholders will control majority ownership of the standalone business. Local teams will manage all engineering responsibilities directly within the country, including chassis architecture, thermal management, antenna tuning, and camera systems.
Carl Pei published an open letter detailing that the business will no longer operate as a sub-brand directed from the United Kingdom. Optiemus Group is joining CMF’s upcoming Series A funding round, expanding on an existing manufacturing joint venture between the two firms.
The reorganization aligns with domestic industrial policies, including India’s ₹62,500-crore Mobile Phone Manufacturing Scheme, which provides financial incentives to vendors that maintain local intellectual property and domestic research operations. Modern budget Android phones rely heavily on tight component integration to compete against established vendors across South Asia.
Ongoing Collaboration With Nothing
Despite the operational split, CMF will maintain a structural link with Nothing. The London-based company will hold a minority equity stake and serve as an ongoing technology partner for upcoming product releases.
CMF devices will continue running Nothing OS and use Nothing’s existing international supply chains. This setup allows CMF to leverage established component procurement networks while designing hardware tailored to regional buyer preferences.
According to reports on the standalone India brand structure, shared technical expertise and core software development will remain accessible to CMF engineers.
Market Scale and Shipment Targets
India represents one of the largest mobile device markets globally, with annual domestic demand exceeding 150 million units. Approximately 99 percent of the handsets sold in the country are assembled locally.
CMF has established an ambitious long-term objective of shipping 100 million smartphones annually. Reaching that volume would give the company greater component purchasing leverage to lower retail prices in the entry-level and mid-range tiers.
As new biometric sensors and display parts reach future Android phones, domestic engineering teams plan to deploy lower-cost components more rapidly without waiting for approvals from overseas offices.
Transition Timeline and Leadership
CMF launched in September 2023 as an accessory and sub-$200 hardware line before Nothing initiated formal spin-off steps in late 2025 by registering CMF India Private Limited.
The company has not disclosed the exact percentage breakdown of equity retained by Nothing versus Indian investors, nor has it shared the total valuation for the Series A round. Executive appointments for CMF’s standalone leadership team and the launch timeline for its first independently developed phone remain unannounced.
