Xyte secures $30m funding for hardware as a service model

Xyte, developer of “the first all-in-one servitisation platform for device and hardware manufacturers”, has announced a $30 million investment round.

The investment includes $20m in Series A funding led by Intel Capital, with participation from Samsung Next and existing investors S Capital and Mindset Ventures, as well as $10m in venture lending from funds and accounts managed by BlackRock. In conjunction with the financing, Roi Bar-Kat, Israel country manager and managing director at Intel Capital, will join Xyte’s board of directors.

In June last year, Xyte announced that former Crestron CEO Randy Klein had joined its advisory board.

This was after announcing in April that the Xyte platform offers support for Microsoft Teams Rooms and Zoom Rooms as well as all SDVoE systems plus devices from Crestron, QSC, Avocor, and many others.

Hardware commoditisation and customer preferences are forcing device and hardware manufacturers to rethink their business. This means transitioning towards offering integrated business solutions that include hardware, software, and services – akin to the models of technology leaders like Tesla and Apple.

Xyte Device Cloud is a full-stack servitisation platform that empowers device and hardware manufacturers to introduce usage-based and other as-a-service business models and develop sustainable customer relationships. It is purpose-built for original equipment manufacturers (OEMs) to manage the complete lifecycle of their connected devices – from the minute they leave the warehouse to the moment they reach customers and through aftermarket sales.

“The hardware-as-a-service model is imperative for device and hardware manufacturers to ensure their business success. Xyte is equipping forward-thinking OEMs with an indispensable software stack to meet that need,” said Roi Bar-Kat. “We are confident that Xyte will play a pivotal role in shaping the ecosystem and enabling device and hardware manufacturers’ businesses to flourish.”

“At Xyte, we are determined to continue supporting connected device manufacturers in every industry. This funding round will further fuel our success and accelerate our geographic expansion, especially across North America and Europe,” said Omer Brookstein, CEO and cofounder of Xyte. “Our investors’ unreserved support demonstrates their commitment to and trust in our mission, especially amidst otherwise turbulent market conditions. We are grateful for their partnership and look forward to our joint success ahead.”

Manufacturers across numerous verticals work with Xyte to support their own connected devices, from industrial and smart buildings to robotics, medical and automotive. This includes market-leading companies like Schneider Electric and Legrand.

“We are happy to be furthering our investment in the Xyte team, especially considering their success across diverse sectors,” said Aya Peterburg, founder and managing partner at S Capital. “With Xyte Device Cloud ready to deepen its impact, we consider ourselves to be partners in its vision and look forward to the journey ahead.”