Lumi United, a Chinese smart home appliances and internet of things (IoT) solutions provider backed by Xiaomi, has secured $100 million in a Series B2 round of financing led by industry investment fund Grand Flight Investment.
Private equity firm Cathay Capital, Joy Capital, which makes investments in TMT and innovative consumption sectors, and Shenzhen-based boutique investment bank Yunmu Capital all poured money into the new round, according to a statement on Thursday.
Lumi United, founded in 2009 and headquartered in Shenzhen, mainly develops smart home appliances and IoT solutions for individual customers and corporate clients like real estate companies, hotel chain brands and premium office building developers in China and worldwide. The company introduced Aqara, a smart home automation brand consisted of intelligent hardware, offline gadget lifestyle stores, a mobile app and a data analysis platform, among others.
Aqara expanded its offerings to offline smart home services in 2017, providing one-stop solutions that cover door-to-door smart home design, marketing and sales, delivery, installation as well as after-sale maintenance. The offline network now serves over 400 smart home appliances providers and more than 300 showrooms in China, according to the statement.
“In the future, Lumi United will develop more quality goods for industry application and continue to promote the adoption of intelligent solutions in residential and commercial scenarios, enabling more people to access smart and tech-driven working and living environments,” said You Yanjun, chairman and CEO of Lumi United, in the statement.
Proceeds will be used to finance the research and development of new products, enhance the construction of the Aqara-branded product line, and improve its online plus offline retail channels.
The company also plans to focus on expansion into overseas markets in North America and Europe in the next three years. It will deliver services and solutions online via the Amazon platform, as well as offline through cooperation with retail stores, shopping malls, supermarkets and large-scale electronic products agents around the world.
Lumi United completed a Series B+ round worth tens of millions of U.S. dollars from Grand Flight Investment and Cathay Capital in December 2018. The company also closed 100 million yuan ($14 million) in a Series B round led by Cathay Capital in January 2018.
Chinese smartphone maker Xiaomi, as well as the country’s venture capital companies Shunwei Capital and Gaorong Capital, backed Lumi United in its Series A round in 2014.
The lead investor, Grand Flight Investment, was launched in April 2016 as an investment spin-off from Hong Kong-listed financial services company Far Eastern Horizon. The company, with over 5 billion yuan ($712 million) in assets under management (AUM), mainly backs growth-stage companies in the fields of healthcare, education, high-end manufacturing, TMT and environmental protection.
Some of its portfolio companies include Chinese automobile after-sale products and services platform Tuhu.cn, Tencent-backed fresh produce e-commerce business Miss Fresh, and Chinese electric vehicle developer WM Motor.