Despite the slowdown in fundraising in French tech, Devialet managed to complete a funding round of 50 million euros. For this operation, the French brand specializing in high-end sound was able to count on the support of Crédit Mutuel Equity and Bpifrance, via its Large Venture fund, two historical shareholders of the company who took the opportunity to strengthen their stake in this flagship of French Tech.
Devialet, which entered the juicy soundbar market this year, also welcomes “a new strategic Asian investor”, whose identity has not been revealed, to feed its ambitions in Asia. This is a “global manufacturer based in China, specialized in the miniaturization of audio, optical and tactile systems [qui] will be a strategic partner to support the company in the diversification and acceleration of licensing agreements”simply indicates the company headed by Franck Lebouchard.
China, Devialet’s priority target in Asia
In recent years, the Asian market has indeed been Devialet’s international priority. Building on a strategy of partnerships and licensed technologies, the brand has notably joined forces with the Chinese behemoth Huawei to market speakers (Sound X and Sound Joy, etc.) and, more recently, headphones (FreeBuds Pro 2). “A partnership with Huawei in Asia is something as important as a partnership with Apple in the United States”, assured Pierre-Emmanuel Calmel, co-founder of Devialet, a few months ago on our show Thursday Pro.
This approach has paid off since the tricolor company now records 40% of its sales in Asia. However, the Chinese market has been particularly complicated for two years due to regular confinements in many cities to stem the Covid-19 pandemic. Thus, Devialet currently makes 10% of its sales in China, compared to 20% before the health crisis.
But the Chinese market is not the company’s only target on the Asian continent, where it has tripled its sales and outlets in the past three years. In addition to six new stores in China, the brand has opened five in South Korea. The company also has physical outlets in Japan, Hong Kong, Taiwan and Indonesia. This ramp-up in Asia, mainly in China, South Korea and Japan, had begun following a fundraising of 16 million euros, supplemented by a loan of 35 million euros from the European Bank investment fund (EIB) in 2019.