Shenzhen-headquartered smart lock manufacturer Kaadas on Wednesday said that it has raised approximately $100 million in a Series B round of funding led by investment firm Orchid Asia.
Shenzhen Qianhai Huxing Asset Management and private equity firm Cowin Capital joined the round as new investors, Kaadas said in a statement.
The company will invest the majority of the proceeds in product R&D, manufacturing and sales, brand marketing and talent recruitment.
Kaadas, which was established in 2009, designs and produces smart door locks for the residential and commercial markets. It sells its products through e-commerce platforms such as Tmall and JD.com, brick-and-mortar retail stores, commission agents, and original equipment manufacturers.
With manufacturing facilities in Dongguan, Zhuhai and Zhejiang, it claims to have sold 1.5 million locks and generated about 1 billion yuan ($152 million) in annual revenue in 2020. This year, it expects to post annual revenue of 2 billion yuan ($305 million) and start preparations for an IPO.
In its statement, Kaadas said the alliance with Orchid Asia will help it expand its presence in foreign markets. According to its press release, it is currently present in Europe, the US and Southeast Asia.
China’s smart lock market comprises players such as Dessmann, Yunding, Guojia, Yeeuu and Loock. Attracted by the market’s growth, Chinese tech giants Huawei and Xiaomi have also forayed into the business.