Nothing is moving ahead with plans to turn its CMF sub-brand into an independent smartphone business in India, with Indian electronics manufacturer Optiemus Infracom set to acquire a controlling 51.1% stake in the proposed joint venture.
The move will transform CMF from a product line under Nothing into a majority Indian-owned company, with manufacturing, ownership and research and development brought together under an India-based entity.
Optiemus To Hold 51.1% Stake
Optiemus has approved a binding term sheet with Nothing Electronics to establish a joint venture focused on the commercialisation and sale of CMF products.
Subject to regulatory approvals and the completion of definitive agreements, Optiemus will initially acquire 51.1% of the equity in the proposed company.
Nothing will remain a shareholder and strategic partner in the new structure, although it will no longer manage CMF as one of its internal product lines.
CMF To Become Independent
CMF was launched by Nothing in 2023 as a separate product line focused on more affordable smartphones and consumer electronics.
Under the new arrangement, the brand will become an independent Indian business with its own operations and R&D capabilities.
The companies want to build CMF into a global smartphone and consumer technology brand that develops products in India for both domestic and international markets.
Manufacturing And R&D Under One Entity
The expanded partnership goes beyond smartphone assembly.
Manufacturing, ownership and research and development will be brought together under the proposed Indian entity.
The companies plan to develop capabilities across industrial design, mechanical engineering, camera engineering, software engineering, connectivity engineering and component engineering.
This would allow CMF to develop more of its products and technology in India instead of limiting the country’s role to manufacturing.
Optiemus To Join Series A Funding
Optiemus will also participate in the upcoming Series A funding round for CMF.
The investment is expected to strengthen its involvement in the brand and support CMF’s transition into an independent company.
The partnership builds on an existing manufacturing joint venture between Nothing and Optiemus announced in September 2025.
That arrangement established India as a manufacturing base for Nothing and CMF devices.
India To Become CMF’s R&D Hub
The companies want the new business to develop a full-stack smartphone engineering ecosystem in India.
This includes developing local expertise in product design, cameras, software, connectivity and components.
Intellectual property generated through the programme is also expected to be held locally.
The broader objective is to move India’s role in smartphone production beyond assembly towards product development, engineering and technology creation.
CMF Products For Global Markets
CMF will not be focused only on Indian consumers.
The company plans to develop and manufacture smartphones and other consumer technology products in India for global markets.
This could give the new entity a larger role in India’s growing electronics export ecosystem.
CMF has already recorded strong growth. According to Counterpoint Research, the brand’s smartphone volumes increased 83% year-on-year in 2025.
Nothing’s Role Will Continue
Although Optiemus will become the majority shareholder, Nothing will continue to have a stake in the new company.
Nothing will also remain involved as a technology and strategic partner, allowing CMF to build on the design, software and engineering capabilities developed under the brand.
The restructuring is expected to give CMF greater independence while retaining a connection with Nothing’s technology and global experience.
A New Phase For India’s Smartphone Industry
The CMF restructuring comes as India seeks to increase domestic capabilities across the electronics value chain.
The proposed company aims to combine Indian manufacturing and engineering talent with Nothing’s technology expertise and CMF’s existing brand presence.
If completed as planned, CMF would become a majority Indian-owned smartphone brand with ambitions to design, engineer and manufacture products in India for customers worldwide.
Summary
Nothing is spinning off CMF into a standalone, majority Indian-owned smartphone business, with Optiemus Infracom set to acquire an initial 51.1% stake in the proposed joint venture. The partnership will combine manufacturing, ownership and R&D in India, with plans covering smartphone design, cameras, software, connectivity and components. Nothing will remain a shareholder and strategic partner in the new company.
Image Source