Photo Credit: Gerd Altmann from Pixabay

According to a recent report, the Internet of Things (IoT) market is estimated to grow at a 25% CAGR to reach $1.5 billion by 2027. Recently listed Tuya Technologies (NYSE: TUYA) is leveraging an active PaaS strategy to drive innovation and growth within this market.

Tuya’s Offerings

China-based Tuya was founded in 2014 by Alex Yang, Jerry Wang, Leo Chen, and Luckin Zhou. It is a developer platform that connects consumers, manufacturing brands, OEMs, and retail chains, giving customers an artificial intelligence and IoT solution.

The company has pioneered a purpose-built IoT cloud platform that delivers a suite of offerings, including Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) solutions to businesses and developers. It is IoT PaaS allows businesses and developers to quickly and cost-effectively develop, launch, manage, and monetize software-enabled devices and services. Its Industry SaaS offering allows businesses to easily and securely deploy, connect, and manage large numbers and different types of smart devices. It also offers businesses, developers, and end users a range of cloud-based value-added services focused on improving their ability to develop and manage IoT experiences.

Its IoT cloud platform has enabled developers to build a healthy IoT ecosystem that includes various brands, OEMs, partners, and end-users who are able to connect with each other through a broad range of smart devices.

Tuya has become the software platform for the IoT era. It has built a comprehensive, cloud-native, and developer-friendly platform that allows businesses and developers to develop software applications that turn traditional static devices into connected and active devices, thus driving engagement within the business and the machine user, and creating new revenue opportunities.

Tuya is one player that is focusing on leveraging a PaaS strategy to drive growth. Its open IoT cloud platform has a rich collection of APIs that enable it to integrate with a wide range of cloud infrastructure components. Its APIs help deliver seamless integration with all leading IoT and smart home services, including Amazon Alexa and Google Assistant. Tuya believes that its PaaS strategy is helping developers innovate on its IoT platform, thus enabling the creation of new IoT experiences and developing fundamental software. This, in turn, attracts more developers who are focused on the application level. The cyclical ecosystem has helped attract over 262,000 IoT and software developers who have built solutions that are helping connect with over 5,000 customers and 2,700 brands across 220 countries. Overall, Tuya powered over 204 million devices last year, becoming the largest AI+IoT PaaS platform globally.

Tuya’s Financials

Tuya’s offerings have helped it expand revenues significantly. For the previous year, it reported revenues of $179.9, growing 70% over the year. Net loss was $66.9 million compared with a loss of $70.5 million in 2019.

Tuya has a host of companies it competes with, but none that offer the wide range of PaaS and SaaS offerings that it does. For instance, there are several smart home solutions providers like ADT, Vivint, and Viomi. And, then there are players like Johnson Controls and Universal Electronics that offer these smart solutions for the enterprise segment. Its PaaS focus will help to continue to drive its wider market reach.

Tuya went public in March on the NYSE at a list price of $21.00. It raised $915.4 million at the time of the IPO and was valued at $11.2 billion. Its stock is trading at $20.35 with a market capitalization of $11.2 billion. It reached a high of $25.86 soon after listing.