34428 - Ayla Networks

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Summary of Investment Information

Project Number

34428

Company Name

AYLA NETWORKS, INC.

Date SPI Disclosed

Feb 5, 2014

Country

World Region

Region

Global

Projected Board Date

Mar 10, 2014

Environmental Category

C - No Impact

Status

Completed

Last Updated Date

Sep 30, 2022

Department

TMT, Venture Capital & Funds

Industry

Telecommunications and Technology

Previous Events

Approved : Mar 28, 2014
Signed : Apr 4, 2014
Invested : Apr 7, 2014

Sector

Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)

Project Description

IFC proposes an investment of up to $5.0 million to support the growth of Sunnyvale, California-based Ayla Networks (“Ayla” or “the Company”), a software and data service company founded in 2010, which provides seamless Internet connectivity, cloud-based data management, and smartphone application development software to home appliance and device manufacturers, as it expands its service to China. IFC’s investment is proposed on the basis of attractive market growth opportunities, initial success in gaining traction with customers, demonstration of their technology in the US and China, and the Company’s partnerships with strong companies in their value chain, in particular chip and chipset makers that allow Ayla to embed their software into consumer products.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	4.50

Development Impact

It is expected that Ayla''s scale up of its software and service offering in China ultimately allow residents to have better control of their home energy use, which studies show leads to reductions of 10%-15%. Once residents are able to control their plugs, heating & cooling, lighting and appliances via a smartphone app, a consumer will be able to set up rules to control equipment linked to occupancy or temperature (e.g. turn down air conditioning when no one is home unless outside temperature passes 34 degrees Celsius) or other factors. Early experience in the US with users of the Nest thermostat, which has similar features to the thermostats that Ayla''s connectivity technology will support, has yielded savings.

IIFC can offer a number of benefits to a small company like Ayla which is newly operating in China. First, IFC will assist Ayla in China by distinguishing it from a wide range of other IoT offerings. In particular, Ayla plans to work with a local company to offers its software service to local governments in China for use with smoke and carbon monoxide detectors, and believes IFC''s involvement will lend it creditability as a small foreign company in China. Secondly, IFC can assist in raising funds from a locally-based investment group which will add to Ayla''s local business and government contacts. Lastly, although other emerging markets do not require a separate cloud service like China, Ayla by design and requirement needs to be a global business quickly and will soon be entering other large emerging markets like India and Brazil where it will also benefit from working with IFC.

E&S Category Rationale / Risks and Mitigation

This project is a category C project according to IFC’s environmental and social review procedures. The Company is a software development firm with its China operations to recruit about 10-15 engineers, and shall use only leased space with no immediate plans to construct or purchase a building. There are minimal environmental or social impacts associated with this project. Therefore, no further environmental or social analysis is required

Contacts

For Inquiries About the Project, Contact

David Friedman
607 W. California Avenue
Sunnyvale, CA 94086
USA
http://www.aylanetworks.com
mailto:dave@aylanetworks.com
Tel: +1 (650) 245-8799

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