CEO Nguyen Manh Toan was a finalist in the prestigious Robocon competition in 2008 and the architect of a groundbreaking graduation project focused on smart building control systems, so he confidently started his own company in the burgeoning field of smart home technology.
A visionary startup with a national mission
Homegy CEO Nguyen Manh Toan (Photo: Binh Minh).
“Vietnam is rich in talent, but for too long we have been synonymous with rice exports. Why not foster significant intellectual capital and ‘Made in Vietnam’ technological innovations with global significance? This idea was the catalyst that led to the founding of Homegy in 2019,” said Nguyen Manh Toan, Director of Homegy.
CEO Nguyen Manh Toan was driven by an unwavering belief in the potential of the smart home industry, reinforced by a December 2022 Statista forecast predicting that global smart home revenues will soar to $222.9 billion by 2027, and set his sights on this promising sector.
Despite his technical background, Toan recognized his shortcomings in business management and operations. Undaunted, he spared no expense in recruiting top experts to guide and support Homegy’s journey. However, securing enthusiastic and knowledgeable experts in the specialized field of smart home technology was no easy task.
“We invested a lot in building our team. Some of our experts joined us with a high monthly salary of VND50 million, excluding sales commission. To retain them, we also offered dividends and shares. The total monthly salary of our expert team amounted to hundreds of millions of VND. Unfortunately, despite our best efforts, the team faced numerous challenges and was disbanded after just six months. But as the saying goes, you can't distinguish success from failure without taking risks,” Tuan said sarcastically.
In its first year, Homegy's revenue was modest, coming mainly from business with friends and acquaintances.
“We adopted a dealer-based distribution model instead of retail. Many partners came to work with us because they trusted our passion and drive. One such partner, Mr Thanh, a distributor in Thai Nguyen, has been with us since the company's inception. He initially considered quitting after meeting our sales representatives, but was convinced by our vision and invested VND300 million to become a distributor in Thai Nguyen. As the owner of a business with more than 300 employees, I realised that financial profit is not the only measure of success, and entrepreneurs must make a meaningful contribution to their motherland and nation,” said the Homegy CEO.
Shortly after its market debut, Homegy faced a major challenge: the COVID-19 pandemic and the subsequent global economic downturn.
“Having started our business amid such turbulent market conditions, we often doubted our future prospects. Thankfully, having weathered the rigors of the ordeal, Homegy has thrived for five years and achieved a certain level of maturity. Currently, our distribution network has spread to almost all 63 provinces and cities, with more than 150 dealers and agents across the country,” Toan confided.
Investment in Research and Development (R&D)
Homegy engineers meticulously develop and master both the hardware and software in-house. Photo by Binh Minh.
Homegy's founders knew that to make their vision a reality, R&D had to be the cornerstone. They believe that R&D can make or break a business, and especially in the early stages of a startup, you need an unwavering focus on product development. That's why the company allocates more than 30% of its budget to R&D every year.
“Adopting a holistic approach from hardware to software, Homegy's engineers develop and master the technology in-house. For all our products, moulds are meticulously designed, manufactured and engraved with the logo to protect the brand and protect consumers from counterfeits. The cost of meticulously manufacturing a mould for one product can reach VND200-300 million. As our ecosystem covers hundreds of product variants, the investment in moulds alone is considerable,” Tuan revealed.
Homegy is a pioneer in integrating Bluetooth Mesh technology into smart home solutions. Last October, the company launched its second-generation Smarthome solution with a two-way voice response controller that integrates Bluetooth Mesh and infrared technology, a pioneering product in the market.
While voice-controlled products already exist, such as Amazon's Alexa and OLLI's Maika, Homegy recognized a significant gap: dependency on the internet. In response, the Sapphira voice-controlled product was conceived to operate autonomously, avoiding dependencies on servers and the internet. With multi-functional capabilities including control of TVs, fans, and air conditioners, the product features native Vietnamese voice control, a testament to Homegy's commitment to inclusivity.
Homegy's vision goes beyond smart homes, as the company plans to develop smart buildings, smart hotels, smart farms, and smart city solutions, aiming to revolutionize multiple sectors.
With an ambition to become a global technology leader, Homegy is not only striving for dominance at home but is gradually expanding its foothold in international markets.
“The transition from a startup with limited resources to a world-class technology company is not a sprint but a journey of perseverance. Ambition is the driver of acceleration, but sustainable growth requires careful planning and gradual progress. We have already established a partnership in Russia and are exploring export opportunities in Southeast Asian markets. We aim to cater to the diverse needs and preferences of customers around the world by tailoring our designs to resonate with the culture and social fabric of each market,” envisions Toan.
“It takes significant funding to catapult a Vietnamese branded product onto the global stage. Alone, progress may be slow and difficult. We long for more partnerships, especially government support. Currently, Vietnam lacks strong policy mechanisms to foster the explosive growth of tech startups. Young ventures like ours need to be nurtured to bring about tomorrow's bountiful harvest,” the Homie Gi CEO expressed his impassioned aspirations.
Binh Minh