IOT is one of the technologies that made our lives easier, more intelligent and automated. Internet of Things service provider China-based Startup Showmac Tech, which is working as the electronic – Sim maker of a well-known brand, Xiaomi, has recently raised $15 million in funding in an A+ series round capitalized by various investors. Currently, it is associated with a deal with Xiaomi in a project of delivering E-sim to the company. The principal investor in this deal is Addor Capital, with CGV capital and Hongtai Aplus as the backup investor.
Showmac Tech is a leading Internet of Things solution provider working on making hardware brighter than ever. The company was established in 2016, with its headquarters in Beijing, China. Till now, more than 10 Million devices have been equipped with Showmac Tech E-Sims. The founder of Showmac Tech is Lily Liu. At the very moment, Showmac Tech has 45 employees. The start-up majorly deals in making E-sim which are sim with any Sim card and card slot. It saves a lot of money and is more convenient to use. Most of the funding raised by the firm is of Venture Capital type. Its leading investors Include Addor Capital, and they are leading the market in research and development operations. Currently, they are only operating in China but are further planning to expand their operations in other areas. The founder herself has given the news of them being in the top position in the E-Sim market in China. However, she says that they are not the first ones to do that in the market but doing it in a way to make it the market leader is a challenging task to achieve in such a short period.
According to the Current CEO, Lily Liu, an E-sim doesn’t need a sim tray, a physical Sim card, or a slot for the same. It is embedded in the device’s body itself in the initial phase of production. Ceo lily Liu said it could also be used as a Software Development kit. The founder has also expressed her views on their first collaboration with Xiaomi by saying that Xiaomi has provided them with numerous best-in-class opportunities, and they are fortunate and grateful enough to produce millions of products every day in their collaboration with the tech giant Xiaomi. The founder also praises 5G by addressing it as “the boon to their company,” and as she said, 5g will elevate the use of IOT-powered devices.
Showmac Tech, also known as Shumi technology, offers various services, with the prime one being Embedded Sim. These embedded Subscriber Identity modules offer end-to-end cloud service, Encryption service, Device management service, and communication management services. Embedded Sim uses the Internet of Things to connect the hardware to the internet to make it smart. It is the replacement of physical SIM cards used and seems beneficial in many terms, such as space-saving, cost-saving, and maintaining convenience. The intelligent hardware is directly connected to the network provider, and the E-SIM of Showmac Tech supports multiple networks.
The recently led funding will be used to improve their products in research and development. Apart from this, this capital will be helpful in producing Embedded SIM massively. They are trying to increase their target market outside China to other regions as well.
This $ 15 Million venture capital funding is one of many investments the start-up has raised to date. Showmac Tech took this as an opportunity to deliver E-Sim to broaden and establish itself in the market. In terms of collaboration, they collaborated with Xiaomi in 2017 to expand their Embedded intelligent hardware market. The deal proved advantageous to both companies, and Xiaomi became one of their prime consumers from that day onwards, and the Chinese tech giant buys around 30 to 35% of the products. It helped the not-so-popular Showmac Tech stand out in its place among all its competitors.
Talking about the primary investors for the deal, Addor Capital, CGV capital, and Hongtai Aplus are the ones. Addor Capital is a venture capital investment service provider established in China and founded in 2014. It has invested in more than 790 companies and small and medium-scale start-ups worldwide. Another one is GGV capital, also known as Granite Global Ventures was established in 2000 in Singapore, and this company is also a leading venture capital investor. Hongtai Aplus is another investment funding company that started its operations in 2014 in various niches such as Medical, Pharma, Information Technology, advanced manufacturing, and education. Yu Minhong led the foundation of Hongtai Aplus.
The Internet of Things is growing at a rapid pace. At the same time, Embedded SIM is the first of their kind ever launched with the respected technology. The funding will help to set another example of the beautiful future IOT has in the market, which will affect consumers worldwide.
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