China smart home specialist Aqara raises $156m
Aqara, a China-based provider of smart home appliances and internet-of-things (IoT) solutions, has raised RMB1 billion ($156 million) in Series C funding.
Participants include Shenzhen Capital Group, Joy Capital, China Telecom, Greenwoods Investment, Zhongyuan Capital, and Liantong Zhongxing - a fund co-launched by China Unicom and CICC Capital. The proceeds will go towards product development, establishing global sales channels, brand building, and recruitment.
Aqara - also known as Lumi United - claims to be one of few Chinese smart-home brands serving consumer and business customers. It offers 500 product lines, all developed in-house, across 30 categories.
Founded in 2009, the company initially focused on the likes of electric curtains, air conditioning and light controllers, and smart locks. These products can be integrated with those of mainstream overseas smart home systems such as Apple HomeKit, Amazon Alexa, and Google Assistant.
Sales were primarily made to individual consumers through online channels. In 2017, Aqara built an offline sales network that now comprises more than 600 showrooms covering 490 cities and counties. Services range from on-site measurement and smart home design to installation and after-sales maintenance.
Recent innovations include the introduction of sensors and artificial intelligence technology to monitor user health - and adjust lighting or other environmental conditions accordingly - and an emphasis on energy saving. The latter is especially important for business customers.
“Aqara can empower more industries to realize the goal of carbon neutrality. Data show that 40% of all energy is consumed by buildings, and automation can lead to energy savings of 20-40%. We can play a positive role for the country in environmental protection, energy-saving, and emissions reduction," said Yanjun You, the company's founder, in a statement.
Aquara raised a $100 million round in 2019 featuring Joy Capital. This followed a Series A in 2014 from smart phone and electronic appliance brand Xiaomi, Shunwei Capital, and Gaorong Capital, and a RMB100 million Series B in 2018 led by Cathay Capital.
According to Qianzhan Industry Research Institute, China's smart home market will be worth RMB580 billion by the end of this year. The country became the largest global consumer of smart home solutions in 2019, with a 50-60% market share.
Yunmu Capital served as the financial advisor for the latest round.
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