Bengaluru based hardware startup Open Appliances, that manufactures smart locks, has announced that it has raised $550,000 from Axilor Ventures and Kumar Vembu, co-founder of software product company Zoho Corp.
The startup plans to use the freshly raised funds further to strengthen its products and enter new verticals. It also plans to file patents for close to half a dozen hardware designs.
Founded in 2015 Gotama Gowda, Rajshekar Jenne and Siddhesh Keluskar, Open Appliances designs, develops and sells revolutionary smart locks for enterprises across sectors.
The startup provides Bluetooth-enabled smart lock systems to telecom and logistics companies. Its product ‘Force’ is a smart padlock that can be remotely unlocked via Bluetooth using a mobile app while ‘Forge’ is a hardened industry-grade lock in-built with a WiFi hotspot for unlocking/locking using smartphones. Forge is mostly used to secure large cabinet boxes.
Gotama Gowda, who is CEO of the startup , said in an interview that the company manufactures 8,000 smart locks every month. It has had sales of around $500,000 since the first product went into commercial production a year ago, he said.
In the same interview, Gotama noted that Open App already has a revenue pipeline of $2 million this fiscal year with more than half of it recognised.
The company estimates that the physical security equipment and services market is estimated to reach $197.07 billion by 2019. Out of this, Access Control as a Service — the company’s target market — will account for $6.06 billion, it says.
Open App competes to a greater extent with players like Latch, which focuses on the enterprise space. While in India, legacy players like Godrej seem to be Open Appliances’ closest competitor at the ‘smart lock’ space for homes and enterprises along with another upcoming niche startup AwakeY.