tech news•Thu, September 24, 2026•4 min read

Nothing’s Big Pivot: CMF Becomes an Independent Indian Smartphone Brand

Nothing is spinning off its budget sub-brand, CMF, into an independent, majority Indian-owned entity. The move, bolstered by a $100 million joint venture with Optiemus Group, aims to turn CMF into a global consumer electronics powerhouse based in India.

A Major Strategic Shift for CMF

In a surprise move that signals a significant shift in the global mobile market, Carl Pei’s Nothing has announced that its budget-focused sub-brand, CMF, is spinning off into an independent company. The new entity will be headquartered in India and majority-owned by Indian shareholders, marking a bold attempt to build a homegrown consumer electronics brand that can compete on the world stage.

Nothing aims to move beyond assembly, betting on building deeper product-engineering capabilities within India.

The $100 Million Joint Venture

Central to this transition is a $100 million joint venture with the Optiemus Group. While Nothing will retain a stake in the new company and continue to share its design, software, and engineering expertise, the operational control is moving to Indian soil. This structural change is designed to capitalize on India's growing role as a manufacturing and research hub.

Majority Indian ownership (51.1%) to align with local incentives and regulatory requirements.
A goal to design and sell 100 million smartphones annually.
Full-stack local R&D, moving the brand beyond mere assembly.
Integration of Nothing’s existing supply chain and software expertise.

Why This Matters Now

The smartphone market in India is currently dominated by mid-range and budget devices. According to industry data, handsets priced between $100 and $400 account for nearly 72% of the Indian market. By establishing a local base, CMF is better positioned to navigate the complex regulatory environment and tap into localized government incentives for designs that originate in India.

CMF becomes Indian—majority Indian owned, headquartered in India, with its own team and R&D in the country.
— Carl Pei, CEO of Nothing

The Future of CMF

This transition isn't just about selling more phones; it's about shifting the brand’s identity. By positioning itself as India's first truly global smartphone brand, CMF aims to leverage the country's manufacturing prowess while maintaining the unique aesthetic and design language that Nothing built its reputation on. For consumers, this likely means more localized product developments tailored to regional needs without losing the global polish the brand is known for.

Key Takeaways

CMF is spinning off from Nothing to become an independent, majority Indian-owned smartphone company.
A $100 million joint venture with Optiemus Group will anchor the new entity’s manufacturing and R&D operations.
The move is designed to scale production to 100 million units annually.
The strategic shift allows CMF to take advantage of local design incentives and deeper integration into the Indian tech ecosystem.
Nothing will maintain a minority stake and continue to provide software and design support.

FAQ

Is CMF still part of Nothing?

CMF is transitioning into an independent company. While Nothing will retain a stake and continue as a strategic partner, the new entity will be managed and owned primarily by Indian shareholders.

Where will CMF be headquartered?

The newly independent CMF will be headquartered in India.

What is the role of the Optiemus Group in this deal?

Optiemus Group is a primary partner in a $100 million joint venture, helping to scale manufacturing and R&D efforts within India.

Does this mean CMF phones will change?

The partnership aims to combine Indian R&D with Nothing’s existing design, software, and supply chain relationships, focusing on scaling global production.