Tuya Smart (NYSE: TUYA), a global provider of IoT development platforms, listed its shares in Hong Kong on Tuesday. The new listing comes 15 months after the company raised $915 million in an IPO on the New York Stock Exchange.
Tuya follows an ongoing trend of US-listed Chinese companies seeking dual listing in Hong Kong. The company, which will price its first offering in Hong Kong at HK$19.30, plans to use the proceeds to enhance its IoT technologies and infrastructure, expand and enhance product offerings and pursue strategic partnerships in the next five years.
In the first quarter of 2022, Tuya has seen robust revenue growth in its Software as a Service (SaaS) offering, bringing in $5.8 million – a 147% annual increase – thanks to the rapid growth of its value-added services, such as monthly subscription revenue. The company’s recently launched smart private cloud product, Cube solution, has achieved major breakthroughs with new customers in the first half of this year. Despite the various challenges of the pandemic, Tuya is seeing strong growth in its enterprise-focused SasS service and overseas expansion.
Founded in 2014, Tuya focuses on providing PaaS and SaaS to brands, OEMs, developers and retail chains across a wide variety of industries including consumer electronics, hospitality, energy, lighting and more.
Strong growth in SaaS
Many of Tuya’s SaaS customers are property developers and hotel owners looking to digitize their offerings. In May, Tuya reached a strategic partnership with Alipay, the best mobile payment app in China. Together, the two companies will help hotels reduce costs and increase efficiency by adding smart devices, hardware and management software. A Tuya-powered smart hotel aims to increase the conversion rate by reducing check-in and check-out times and increasing the interconnection between different devices in the hotel.
Tuya also made significant progress in its smart private cloud product, Cube solution. Several leading customers in different countries and industries have recognized the company’s private cloud solution. Telkom Indonesia, the largest telecom operator in Indonesia with service coverage of more than 55% of all Indonesian households and hundreds of millions of registered users, will use the Cube solution to leverage the strong purchasing power of consumers in its network, enabling the development of its Indonesian smart home appliance market.
Tuya provides a holistic solution to companies around the world looking to digitize their products, including connectivity hardware, platform services and app development. The company has seen accelerated growth in its partnerships with overseas clients.
For example, Malaysia’s leading hotel system integrator Core System Technologies is using Tuya’s SaaS solution for hotels to create the first smart hotel in Malaysia. In Mexico, industrial lighting brand Dimas Lighting used Tuya’s software capabilities to complete the construction of its intelligent commercial lighting platform and implemented several industrial lighting projects.
Earlier this year, Tuya teamed up with PEARL. GmbH, a leading German mail order company and online channel for consumer electronics and smart home products. The two companies have agreed to work together to boost smart home adoption in the European market, by introducing consumers to a wide variety of smart home products, including light bulbs, smart sockets and various other home appliances, all of them connected and controlled by a single mobile phone. app developed on the Tuya platform.
Additionally, in June, Tuya also announced a strategic partnership with Denver A/S, a leading European consumer electronics distributor. The two companies will work together to promote a wide range of smart home products in Europe, including smart home and security products.
Tuya was selected as a top 10 IoT vendor in research and consulting firm Gartner’s 2020 report on “Competitive Landscape: IoT Platform Vendors.” Gartner analyzed hundreds of technology companies worldwide for the report.
In 2021, Tuya was also included as a Sample Vendor in Gartner’s recently released report, Gartner Hype Cycle for Digital Business Capabilities, which focuses on large-scale digital change that will impact all industries and enterprises.
According to the report, the market penetration for digitally connected products is 1% to 5% of the target audience. Companies face many challenges in adopting smart technologies, including internal frictions and the lack of a clear business strategy. This is where companies like Tuya Smart can step in and help companies connect with customers, improve their products and optimize their business models.