HMD Global is intensifying its push into the Indian market by preloading the local AI chatbot, Indus, onto its latest smartphone, the Vibe 2 5G. This strategic partnership serves as a critical pilot program, allowing both HMD and Sarvam AI to measure consumer demand for a chatbot specifically engineered for the Indian demographic.
Strategic Integration for Market Growth
“With this partnership, the first thing we want to do is get the Indus app to consumers,” explained Ravi Kunwar, HMD’s CEO and vice president for India and APAC, in an interview with TechCrunch. “Once they start using it, we will move to phase two to focus on driving more traction and stickiness. Right now, by preloading the app, we want to be more accessible to users.”
The Vibe 2 5G is positioned as a midrange Android device, featuring a robust 6,000 mAh battery and an aggressive price point of ₹10,999 ($114). Kunwar confirmed that the entire Vibe smartphone series will include the chatbot integration, with plans to extend Sarvam AI’s technology to HMD feature phones in the coming months.
Chasing Market Share in India
The move toward feature phone integration could be a turning point for both brands. As of 2025, IDC data shows HMD holding a 4% share of India’s feature phone market, while its smartphone presence remains minimal, failing to rank within the top 15 manufacturers.
Early adoption metrics for Indus reflect the challenges of entering a competitive landscape. Data from Appfigures indicates that nearly three months post-launch, the app has surpassed 293,000 downloads in India. For context, industry giant ChatGPT has recorded 43.9 million downloads in the same region.
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Why Regional AI Matters
Despite the current gap in download numbers, the HMD-Sarvam partnership highlights a broader distribution strategy. By bundling regional AI assistants with affordable hardware, companies can bridge the gap in a linguistically diverse nation where standard English-language AI tools often face significant adoption barriers. This approach represents a vital case study for observers monitoring how AI takes root in emerging economies.
Sarvam AI’s Growing Influence
Sarvam continues to solidify its status as a premier Indian AI startup. Beyond the consumer-facing Indus app, the company is doubling down on enterprise-level voice solutions. The startup is currently attracting significant capital, with reports suggesting an upcoming funding round of $300 million, potentially pushing its valuation to $1.5 billion.
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