NEA Exits Part of Stake as 65 Equity Partners Invests in Tuya’s Future

Tuya Inc., a China-based cloud platform provider, revealed on Monday that it has finalized an agreement with 65 Equity Partners. Under the terms of the deal, 65 Equity Partners will acquire roughly 13% of Tuya’s outstanding shares from New Enterprise Associates (NEA), a U.S.-headquartered venture capital firm.

The investment, valued at approximately $100 million, will enable NEA to partially exit its investment in Tuya, a company currently valued at around $969 million. With the new investment, Tuya plans to expand its global footprint in the cloud platform sector. 65 Equity Partners’ purchase helps Tuya provide additional resources as the company works towards its long-term growth objectives.

65 Equity Partners spoke about Tuya’s growth prospects, with CEO Tan Chong Lee stating, “We are pleased to support Tuya in its next phase of growth.” Karan Saraf, another representative from 65 Equity Partners, emphasized Tuya’s leadership in the smart solution development ecosystem, noting the company’s competitive edge in both smart cloud-based software and device solutions. 

The Singapore-based investment firm is confident that Tuya’s continued innovation and expanding customer base will help the firm achieve long-term success in the rapidly evolving AIoT (Artificial Intelligence of Things) sector.

Carmen Chang, Partner and Head of Asia at New Enterprise Associates (NEA), stated, “We are pleased to remain a significant shareholder as the company continues to execute its strategic priorities.” NEA has been a key backer of Tuya since its founding in 2014, and the firm has been reducing its stake in the company over recent years. This includes selling a portion of shares to 65 Equity Partners and offering a partial exit while still maintaining a continued role as an important shareholder.

Jerry Wang, Tuya’s Founder and CEO, expressed his views about the partnership with 65 Equity Partners, stating that their investment aligns with Tuya’s international expansion strategy, particularly in the Asia-Pacific region, where the company sees immense growth potential. 

The CEO further noted that Tuya’s future listing on the Singapore Exchange (SGX) would enhance the company’s presence in the global capital markets. With a strong focus on empowering over one million developers worldwide, Tuya aims to capture opportunities in the AIoT, smart devices, and commercial applications sectors.

Tuya’s cloud platform enables developers to create smart solutions seamlessly integrating devices. The company offers various services, including platform-as-a-service (PaaS), software-as-a-service (SaaS), and AI-driven solutions. 

With a market valuation exceeding $1 billion and revenue of approximately $135 million in the first half of 2024, Tuya is expected to observe continued growth. Its focus on green and low-carbon principles and its developer ecosystem support its vision to lead the smart solutions industry globally.

New Enterprise Associates (NEA), a global venture capital firm, has invested in Tuya since its inception in 2014. The firm manages over $25 billion in assets as of mid-2024 and has a long history of supporting companies across various sectors, including technology and healthcare. NEA has backed over 280 portfolio company IPOs and facilitated more than 465 mergers and acquisitions. Despite reducing its stake in Tuya in recent years, NEA remains a key shareholder, continuing to support the company’s strategic growth.

Meanwhile, 65 Equity Partners, backed by Temasek, has also been active in expanding its investment portfolio. In recent months, the firm has acquired a minority stake in Kendra Scott, a popular US-based jewelry brand, and made a significant S$100 million investment in Singaporean manufacturer Hi-P International.