With 500%+ growth in 2018, the Smartfrog Group is the fastest-growing IoT company in Europe and US. As a full-stack company, Smartfrog has developed a universal IoT platform designed to build dedicated solutions across product areas. The platform enables data-driven business, leveraging on an end-to-end controlled value chain.
As the first vertical, Smartfrog focuses on security. Leveraging on the trusted brand built and the reach gained, the business will scale gradually across other verticals such as smart home sensors, health care etc.
Unlike peers that are hardware and retail focused, the Group’s business model is purely SaaS and Direct focused, offering both freemium and paid subscriptions including an optional dedicated device as enabler. The products are primarily distributed via the company’s online shop as well as sales partnerships with leading utilities leveraging their customer base.
Smartfrog was founded in 2014 and has now IoT users in 187 countries. The business model and the going-to-market strategy proved to be working at competitive customer acquisition costs as well as positive unit economics, high gross margin and >100% growth per year (industry growth <20%). Based on its traction, in early 2018, the company decided to accelerate its organic growth by acquisitions of its peers, transforming their business model and going-to-market strategy.
After validating a pipeline of M&A prospects, Smartfrog acquired a controlling interest in Canary, a US IoT pioneer and category leader, later in 2018. Canary and Smartfrog have complementary products, technologies and markets. While Smartfrog focused mainly on Europe, Canary built a market leadership position in the US.
Integrating Smartfrog’s strategy and its full-stack approach, Canary’s business is transforming and showing a significant uplift in major KPIs (revenue, gross margin, customer satisfaction etc.).
Smartfrog continues its path of rapid growth – both organically and by further M&A.