Future Fund backs $200m round for China's Tuya Smart
Australia’s Future Fund has joined a $200 million Series C round of funding for Tuya Smart, a Chinese internet-of-things (IoT) and voice artificial intelligence (AI) platform.
Additional contributions came from NEA, China International Capital Corp. (CICC), China Broadband Capital (CBC), Paris-based late-stage tech investor Quadrille Capital, and CM Capital Advisors, an investment advisor established by the family office of Hong Kong’s Cha Group.
Founded in 2014 by Xueji Wang and Haohan Chen, who serve as CEO and chairman, respectively, Tuya seeks to integrate AI technology and IoT devices. It produces modules that are embedded in devices and connect with a dedicated app and a cloud-based big data platform. These systems are compatible with lights, household appliances, and security cameras. For example, users can control lights through voice commands or instruct a kettle to heat water to a specific temperature.
The company claims to provide intelligent solutions for more than 11,000 products, reaching tens of millions of consumers across 200 countries and territories. Tuya Smart receives over 20 billion device requests and has six million AI interactions every day, while accumulated data has reached 1 petabyte.
Wang said in a statement that the latest funding would go towards the development of solutions for a wider variety of customers in smart home, smart business, and smart city contexts. The company is also keen to expand its global footprint and the international make-up of its investor base is expected to be helpful in this respect.
Future Fund said it was impressed by Tuya’s ability to help many companies switch to smart appliances through a system that is standardized yet allows some customization. CBC added that the company’s growth potential is substantial given that intelligent hardware is present in only 5% of household appliances and lighting and electrical systems.
According to AVCJ Research, Tuya received a Series A round of unspecified size from NEA in 2015. This was followed by a Series B said to be worth hundreds of millions of renminbi provided by CICC, NEA, Quadrille, and Oriental Fortune Capital.
Future Fund has A$139 billion ($103 billion) in assets, of which A$17 billion is allocated to private equity and across fund-of-funds, direct GP commitments, and co-investment. Within this, A$8 billion is in VC and small business. The sovereign wealth fund increasingly participates directly in late-stage rounds for technology companies alongside portfolio GPs. However, AVCJ Research has no previous records of direct investments of this nature in China.
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