Dreame Technology (DREAME), a Chinese brand of intelligent household appliances and one of the acclaimed 'Four Greats' in the robotic vacuum cleaner industry, is expected to generate a revenue of CNY 8 billion in 2023. Earlier, its founder and CEO, Yu Hao, indicated in a media interview that Dreame Technology's revenue in 2023 is likely to surpass CNY 10 billion.
Despite the industry's overall slowdown, Dreame Technology's expansion pace has notably decelerated. Based on relevant data, from 2020 to 2022, Dreame Technology's overall performance increased tenfold, with the independent brand's performance growing twentyfold. However, from January to September of this year, Dreame Technology's brand revenue only achieved a 106% growth, which is a significant decline compared to the average annual growth rate of the past three years.
Dreame Technology was established in 2017 and joined Xiaomi's ecosystem in the same year, mainly responsible for the intelligent cleaning category. In May 2019, Dreame started to launch its own brand and gradually reduced its OEM activities for Xiaomi. According to media reports, its OEM ratio decreased to about 30% in 2022. Publicly available data reveals Dreame Technology's revenues exceeding 500 million yuan, surpassing CNY 2 billion, surpassingCNY4 billion, and nearly reaching CNY6 billion from 2019 to 2022, respectively.
Since its establishment, the company has completed six rounds of financing. In October 2022, Dreame Technology secured a CNY 3.6 billion Series C financing, setting a new record in the intelligent cleaning industry. Its valuation approached CNY 20 billion, marking a more than 40-fold increase compared to its Series B financing valuation. China Renaissance and CPE led this investment round, with strategic investment from Country Garden Ventures and followed by Yunfeng Capital, Stoneylake Asset, Beijing Taikang Investment, Skywalker Capital, Harvest Investment, and Fortune Capital, among others. Existing shareholders Xiaomi Group, Shunwei Capital, and IDG Capital also made additional investments.
In May 2023, Dreame Technology completed its D+ round of financing with Mingyun Capital as the investor. The specific financing amount remains undisclosed. However, it is important to note that the original text did not include any quotes or industry-specific jargon, so I did not make any changes in that regard.
In recent years, Dreame Technology has rapidly expanded its product categories to include commercial cleaning, humanoid robots, and even plans to enter the vehicle manufacturing industry to seek new growth opportunities. This expansion is likely due to market competition and investor valuation pressures. The goal is to become the industry technology leader by 2023, the industry market share leader by 2024, and the industry profit leader by 2025.
According to public information from EqualOcean, both Stone Technology and Dreame Technology have been involved in the automotive manufacturing business for over a year. Previous media reports have mentioned that Dreame Technology, as a Xiaomi ecosystem enterprise, formed a small team in 2021 to support Xiaomi's car manufacturing, indicating possible support in motor development. Currently, Dreame Technology's internal car manufacturing team comprises approximately 60 individuals. According to internal plans, Dreame Technology is expected to go public next year.
Simultaneously, Dreame Technology is actively expanding its global market to create a 'second growth curve' overseas. According to a spokesperson from Dreame Technology, the company's overseas business revenue surged by 110% year-on-year from January to July 2023. Southeast Asia is one of Dreame Technology's primary markets. Data shows that during the 2023 Double Eleven shopping festival, sales in the Southeast Asian market exceeded hundreds of millions. Popular products such as the L20 Ultra robotic vacuum cleaner and the H12 Pro floor scrubber were sold out comprehensively.
Currently, Dreame Technology has established a solid presence in Southeast Asia, Russia, Northeastern Europe, and Southwestern Europe. In 2023, it once again expanded internationally, entering markets in the Middle East, Africa, India, South America, with plans to further refine its overseas market layout.
