Shelly Group SE

Background

Shelly Group SE, formerly known as Allterco AD, is a technology holding company specializing in the development, manufacturing, and distribution of high-quality Internet of Things (IoT) products. Founded in 2003 as Teracomm Ltd., the company initially focused on telecommunications and mobile innovations. In 2015, it restructured to concentrate on IoT and wearable technologies, leading to the creation of Allterco Robotics and the launch of the Shelly brand. The company's mission is to enhance energy efficiency and comfort in homes and businesses through innovative smart building solutions. With a global presence spanning over 100 markets, Shelly Group operates offices in Bulgaria, Germany, Slovenia, China, and the USA.

Key Strategic Focus

Shelly Group's strategic focus centers on expanding its IoT product portfolio and strengthening its position in the smart building solutions market. The company emphasizes the development of user-friendly, competitive products that cater to both residential and commercial applications. Key technologies include smart home devices, energy management systems, and wearable technology. Primary markets targeted encompass Europe, North America, and Asia, with significant growth observed in German-speaking countries, Italy, and the Iberian Peninsula.

Financials and Funding

In 2024, Shelly Group reported a 42.4% increase in revenue, reaching EUR 106.7 million. Earnings Before Interest and Taxes (EBIT) grew by 34.4% to EUR 25.7 million, with an EBIT margin of 24.1%. The consolidated net profit rose by 36.9% to EUR 23.1 million. The equity ratio slightly decreased from 85.8% to 81.4%, influenced by future rental expenses under IFRS 16. Operating cash flow declined to EUR 2.8 million due to increased working capital investments. For 2025, the company projects revenue between EUR 145 million and EUR 155 million, with EBIT expected to reach EUR 35-40 million.

Pipeline Development

Shelly Group continues to expand its product offerings, with recent developments including the Gen4 series of smart home devices unveiled at CES 2025. The company also introduced the Shelly Wave lineup, enhanced with Z-Wave® Long Range technology, targeting the U.S. market. These innovations aim to provide advanced smart building solutions, with anticipated milestones including further product launches and market expansions throughout 2025.

Technological Platform and Innovation

Shelly Group distinguishes itself through proprietary technologies and innovative methodologies:

• Proprietary Technologies: The company develops a range of smart home devices under the Shelly brand, including smart switches, plugs, sensors, and energy meters.

• Scientific Methods: Shelly Group employs advanced IoT protocols and integrates machine learning algorithms to enhance device functionality and user experience.

Leadership Team

• Dimitar Dimitrov: Co-CEO and Head of Research & Development. An IT entrepreneur and technology visionary, Dimitrov founded his first company before graduating high school. He has extensive experience in software development and mobile solutions, leading the IoT business within Shelly Group.

• Wolfgang Kirsch: Co-CEO of Shelly Group SE and CEO of Allterco Europe. With over 25 years in consumer electronics retail, Kirsch held senior positions at MediaMarktSaturn Retail Group, focusing on expansion, brand development, and digital transformation.

• Svetlin Todorov: CEO of U.S. Operations and Business Relations. An entrepreneur with over 20 years in telecommunications, media, and technology, Todorov co-founded Allterco JSCo and oversees the company's U.S. business strategies.

• Gregor Bieler: Chairman of the Board of Directors. Bieler has over 15 years of experience in digital business and culture transformation, holding leadership roles at companies like Microsoft Germany GmbH and PayPal.

• Nikolay Martinov: Independent Board Member. With over 18 years in capital markets and finance, Martinov co-founded Impetus Capital and serves as a valuable advisor to Shelly Group.

Leadership Changes

In December 2024, Shelly Group transitioned to a European Company (Societas Europaea – SE), aligning with European Council Regulation No. 2157/2001. This change did not impact shareholders, customers, or existing contracts, and the company's stock market listing and share tradability remained unchanged.

Competitor Profile

Market Insights and Dynamics

The global smart home market is experiencing significant growth, driven by increasing consumer demand for energy-efficient and convenient home automation solutions. Advancements in IoT technology and the proliferation of connected devices contribute to this expansion.

Competitor Analysis

Shelly Group faces competition from several key players in the IoT and smart home industry:

• Aeotec: Specializes in Z-Wave products, offering a range of smart home devices including sensors, switches, and controllers.

• Fibaro: Provides a comprehensive suite of smart home solutions, focusing on home automation and security systems.

• Sonoff: Offers affordable smart home devices compatible with various platforms, targeting budget-conscious consumers.

• TP-Link: Known for its Kasa Smart line, TP-Link delivers a variety of smart plugs, switches, and cameras with broad market reach.

• Philips Hue: A leader in smart lighting solutions, Philips Hue provides an extensive range of connected lighting products.