Technology company Tsinghua Holdings Corp will invest about $30 million in an Indian handset maker through an affiliate in Hong Kong, according to media reports on Monday.
The Indian company - Lava International - has issued and offered 5 million compulsory convertible preference shares to Tsinghua Holdings' affiliate UNIC Memory Technology, India's Economic Times reported on its website.
Lava International plans to invest the funds from the Chinese company in handset design and manufacturing facilities in India to improve its production capacity, according to the report. The Indian company has been trying to raise $100 million for more than two years, as it faces tough competition from Chinese firms such as Xiaomi, the report said.
