Tuya, a Chinese IoT cloud platform for smart devices, has filed for an initial public offering (IPO) on the New York Stock Exchange. It said in a filing that it targets to raise $100 million, which is a placeholder amount likely to change.
In the regulatory filing, Tuya did not disclose its pricing terms and it has not selected a ticker symbol. Morgan Stanley, BofA Securities, and Chinese global investment bank CICC are the joint bookrunners for the deal.
After the IPO, Tuya will bankroll the developments of R&D, and brand marketing. It may also invest some part of the proceeds for technology infrastructure investments.
Tuya, which was set up in 2014 in East China’s Hangzhou, offers platform-as-a-service (PaaS) and software-as-a-service (SaaS) to industries through its competitive IoT cloud platform. The company claims that its offerings can support companies to activate an IoT ecosystem of brands, OEMs, partners, and end-users to engage and communicate through smart devices.
Last year it served over 5,000 clients spanning equipment manufacturers, OEMs, industry operators, and system integrators. Meanwhile, its IoT PaaS supported more than 2,700 players such as Calex, Philips, and Schneider Electric to develop smart devices.
The company registered $180 million in annual turnover in 2020, a 70% year-on-year growth. During the same period, its net loss stood at $66.91 million, down $3.56 million.
US global venture capital firm New Enterprise Associates (NEA) is the largest shareholder in Tuya with a 23.9% equity interest. In 2018, NEA along with Paris-based Quadrille Capital, Australian sovereign wealth fund Future Capital, Chinese TMT innovations-focused CBC Capital and others, had collectively seeded $200 million for Tuya’s Series C round funding.
Chinese tech giant Tencent is the third-largest shareholder with a 10.8% stake. Tencent had participated in Tuya’s $250 million Series D round funding in 2019.
Tuya was also backed by a slew of prominent investors namely Oriental Fortune Capital, Vision Plus Capital, and Quadrille Capital, among others.
China’s AIoT market size reached 581.5 billion yuan ($90 billion) by the end of 2020, up 52.7% than that of 2019, according to Chinese leading internet data provider iResearch.