Singapore’s 65 Equity Partners is purchasing around 13% secondhand stake in Tuya, a Chinese software company that’s worth around $969 million, from an existing shareholder.
The deal, which was reported to be worth $100 million by The Straits Times, will provide a partial exit for New Enterprise Associates, a US venture capital firm which has been on Tuya’s cap table since its establishment in 2014.
“We are pleased to remain a significant shareholder as the company continues to execute on its strategic priorities,” said Carmen Chang, Partner and Head of Asia at NEA, in a statement.
The $25-billion startup investor has been reducing ownership in the Tencent-backed firm over the past years since the portfolio had raised $915 million in the first-time share sale on the New York Stock Exchange in one of the largest US listings by Chinese companies in 2021.
Tuya is a cloud computing company that develops software for smart home devices. It closed a Series E round led by Hillhouse Capital in 2021 before completing a dual primary listing on the Hong Kong Stock Exchange in 2022, according to its website.
The tech firm reported a total revenue of about $135 million in the first six months ended June 2024, an increase of around 29% from the same period in 2023, per its interim filings in September.
The Asia-Pacific region, particularly Southeast Asia, represents a big opportunity for Tuya’s market expansion and future listing plan on the Singapore Exchange, according to its founder and CEO Jerry Wang.
“We believe the investment from 65 aligns seamlessly with our international expansion strategy and offers possibilities for a future additional listing on the SGX, which will further enhance Tuya’s presence in the global capital markets,” Wang said in the statement.
65’s investment in Tuya was made from its Anchor Fund, which supports businesses looking to list in Singapore, according to its CEO Choong Lee Tan. The investment firm was set up in 2021 to invest in mid-size Singaporean companies for business expansion and companies operating in Southeast Asia with plans to list in the city-state.
The investment manager has been on a global shopping spree this year. DealStreetAsia reported in September that it was previously mulling a deal with Singaporean appliance startup PRISM+.
The Singaporean investor acquired a minority stake in Kendra Scott, a US-based jewellery brand with over 1.4 million Instagram followers in September. The news came after it made a S$100 million-investment in Hi-P International, a Singaporean manufacturing firm founded in 1980.
DealStreetAsia reported in July that 65 Equity Partners and Indonesia’s AC Ventures were reviewing an investment in Oatside. AC Ventures was later confirmed to have invested almost $4 million earlier this month as part of the oat milk startup’s ongoing Series B round. The Temasek-backed firm is understood to have backed away from the deal.
