Xyte raises $20 million Series A and lends $10 million from BlackRock to help OEMs manage their devices
Xyte raises $20 million Series A and lends $10 million from BlackRock to help OEMs manage their devices
The Israeli startup’s platform enables OEMs across different industries to cloudify, service, support, and commercialize their connected devices
Xyte, which has developed a servitization platform for device and hardware manufacturers, announced on Tuesday a $30 million investment round, which includes $20 million in Series A funding led by Intel Capital, with participation from Samsung Next and existing investors S Capital and Mindset Ventures, as well as $10 million 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. Including loans, Xyte has raised $37 million to date.
Xyte’s Device Cloud (XDC) platform was built for device and hardware manufacturers. It enables OEMs across different industries to cloudify, service, support, and commercialize their connected devices in one place, transforming them into integrated business solutions that combine hardware, software, and services. With XDC, device and hardware manufacturers can 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.
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.
In a conversation with Calcalist, Omer Brookstein, CEO, and co-founder of Xyte, explained the solutions provided by his company. "We are a software-only company, providing hardware manufacturers with a cloud platform to manage connected devices. We enable manufacturers to transition from selling a product to offering a service. For example, Schneider Electric now offers heating thermostat systems for homes as a subscription rather than a traditional purchase."
"We are at the beginning of our journey with one million dollars in annual revenue and dozens of connected customers," added Brookstein. "We plan to utilize the fundraising funds in the upcoming year to build a sales team in New York and Silicon Valley. Our goal is to double sales this year, aiming to surpass two million dollars."
Xyte was co-founded by Omer Brookstein and Boris Dinkevich in 2020. The two met through an online forum for the IDF’s 8200 unit alumni. Brookstein spent over a decade working in different roles at Crestron Electronics, an American corporation in the workplace technology field, while Dinkevich is a veteran of the software development world. The company, which took part in the Intel Ignite accelerator, employs around 30 people, including 20 in Israel.
