According to ET Telecom, Mobiistar seems to have discontinued its smartphone business in India after V-Sun Technologies' production partner ended production here. V-Sun's parent company filed for bankruptcy in China, resulting in a supply chain disruption for Mobiistar.
The source of ET Telecom revealed that most of the directors have left the company, including CEO Group Carl Ngo. Carl Ngo is said to return to Vietnam without giving any updates on business activities to Indian partners.
Former CFO Mobiistar, Ajay Dua, who resigned recently, confirmed the problems at the company and said that Ngo is in talks with investors in India and Vietnam to raise capital, restoring business in China after V-Sun ceased operations.
Notably, Mobiistar has not paid all marketing and distribution costs in India. About 50 marketing companies are still waiting for Mobiistar to pay debts. They accused the mobile carrier of stopping all communications. Another said that the company paid part by part to the distribution partner.
Mobiistar joins the Indian market in 2018, V-Sun Technologies is the only manufacturer of the company here. According to local media, V-Sun applied for bankruptcy on May 19 in China and dismissed all employees the same day.
V-Sun's factory is located in Bawal, Haryana with Jaina Group partner. V-Sun used to own 22% of the factory, the rest of Jaina. According to Jaina, V-Sun sold its shares to other Chinese companies and their holdings remained the same, without affecting the Bawal factory.
Some smaller Chinese brands withdrew from India, such as Comio, Gionee, and Homtom. HTC, Sony also had to give up the fight when Samsung, Xiaomi, Oppo and Vivo prevailed. Market research firm Counterpoint Research expects 15 smartphone companies to stop operating in India this year.