In a move aimed at doubling down on its direct-to-consumer (D2C) business, Open Appliances Pvt. Ltd, which runs the digital lock startup Openapp, Wednesday said it has acquired Kochi-based startup SectorQube in an all-stock deal that values the latter at Rs 17.8 crore (around $2.3 million).
Through this acquisition, Openapp will launch indigenous digital locks. SectorQube will become a core part of the growth strategy of Openapp, the statement said.
“Our D2C business currently has a ratio of 45:55 between metros and Tier III-IV towns. We have made the acquisition to be able to exclusively create products for India while taking on the incumbents and traders head-on,” said Gotama Gowda, CEO of Openapp.
Openapp, a tech-first startup, is the only company out of America and China equipped with the capability to create indigenous end-to-end IP for smart locks.
Founded in 2015, Bengaluru-based Openapp offers digital locks for homes in three categories such as fingerprint enabled, built-in Bluetooth and GSM-enabled smart locks. The digital lock startup is backed by Axilor Ventures, Unicorn India Ventures, Zoho Family Office and Karnataka Semiconductor Venture Capital Fund (KARSEMVEN Fund).
“We are very bullish about the deal. With our 11 years of expertise in the development of smart products for companies like IFB, Godrej, V-Guard, etc. we are thrilled about building smart products from Openapp that will touch 10 million homes in the next five years,” said Nibu Alias, CEO of SectorQube.
Founded in 2011, SectorQube offers engineering solutions such as mobile app solutions, IoT-powered solutions and services. The startup helps its users by transforming products into products as a service and transit from a physical world to a digital world. Initially, the startup was launched to build smart kitchen appliances such as smart multi-functional ovens, and automatic roti makers, by leveraging the power of the internet-of-things (IoT).
SectorQube raised an undisclosed amount from Mumbai-based venture capital fund Unicorn India Ventures in 2018. In 2014, the startup raised over $48,000 (around Rs 30 lakh) via crowdfunding for its flagship product Microwave Android Integrated Device (MAID).
