Tencent-backed Chinese cloud IoT provider Tuya files for US IPO

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.