Temasek-backed firm buying stake in Tuya for $134 million

Singapore fund plans to lead IOT specialist to secondary listing on local bourse

- Ven Sreenivasan

In a move which could attract another listing to the Singapore bourse, Temasek-backed global investment firm 65 Equity Partners is buying into Hong Kong- and New York-listed internet of things (IOT) specialist Tuya Inc.

The deal will see the Singapore fund becoming a 13 per cent owner in Tuya via an investment of US$100 million (S$134 million).

It is buying the stake from venture capital firm New Enterprise Associates.

Tuya is a specialist in producing software which enables household devices to connect or "speak" with each other in a "smart" way.

It has revenue of about US$100 million and a market capitalisation of over US$1 billion.

Speaking to The Straits Times, 65 Equity Partners chief executive Tan Chong Lee said the investment aligns strategically with the fund's mandate of supporting high-quality businesses seeking a listing on the Singapore Exchange (SGX).

"We are investing in high growth, mid-cap companies which are suited for listing on the Singapore market. These would ideally be those in the US$1 billion to US$3 billion range," he said.