Bulgarian smart-home automation pioneer Shelly Group has vaulted into Europe’s exclusive unicorn club, reaching a €1.1 billion valuation on the Frankfurt Stock Exchange as of June 4, 2025. This milestone marks the company’s rapid ascent and the growing influence of Central and Eastern Europe’s tech sector.
The story of Shelly Group: from telecom roots to IoT trailblazer
Founded in Sofia in 2003 as Teracomm Ltd, Shelly Group began as a telecom provider. The company’s founders — CEO Dimitar Dimitrov, with over 25 years in telecommunications and robotics, and co-founder Svetlin Todorov, now CEO of US Operations — leveraged their deep mobile and telecom expertise to identify a crucial gap in the emerging smart home market: the need for accessible, privacy-centric automation. Their mission became clear: empower users to control their environments without compromising data privacy or flexibility — a vision defining the Shelly brand.
Shelly’s transformation from SMS ringtone provider to IoT leader accelerated in 2013 with the launch of its first smart home system, “She.” A pivotal moment came in 2015 with the spin-off of Allterco Robotics, leading to the 2018 debut of the Shelly 1 relay. This palm-sized device, featuring an open API and local control, quickly became a favourite among DIY enthusiasts worldwide.
In 2019, Shelly Group broke from its telecom origins by selling five mobile service subsidiaries to Norway’s Link Mobility for €7.9 million. The proceeds, reinvested into IoT research and development, paid off handsomely. Shelly’s revenue soared 43% year-over-year to €107 million in 2024, with first-quarter 2025 sales up 29% to €26.5 million.
Market leadership through innovation and openness
Shelly Group leads the retrofittable IoT device market with hacker-friendly relays and sensors. Shares under the ticker SLYG have surged to €49.80 in Frankfurt trading, a 6,000% increase from its 2016 IPO price of €0.74 on the Bulgarian Stock Exchange.
The company addressed a significant pain point in the innovative building sector: most alternatives were locked into proprietary cloud platforms or required expensive, complex rewiring. Shelly’s solution — retrofittable, hacker-friendly devices — allows users to upgrade existing electrical systems easily and securely while keeping data local. This approach has resonated with privacy-conscious consumers and professional installers seeking flexibility and reliability.
Shelly’s products are priced around 50% below most competitors, making them highly attractive to cost-conscious buyers without compromising quality. Their relays, plugs, and sensors are known for ease of installation and use, key factors in winning over DIY users and professionals.
Their open API, programmable nature, and compatibility with major platforms, including Amazon Alexa, Google Home, SmartThings, Home Assistant, and Apple HomeKit, have built a loyal, engaged community. As of 2025, there were over 2 million active app users and more than 23 million devices sold globally.
Open-API strategy and product expansion
Unlike cloud-dependent competitors, Shelly devices operate entirely locally, appealing to privacy-focused users and professional installers. Their technology stands out through open-API, locally controllable devices that support multiple protocols, including Matter, Zigbee, Wi-Fi, and Bluetooth.
The Gen4 product line, unveiled at CES 2025, features advanced energy monitoring, embedded AI for predictive maintenance, and the Wall Display X2 — a sleek, sensor-rich touchscreen control panel. These innovations offer future-proof flexibility and seamless integration into any smart home setup.
Shelly’s robust, capital-light production model is another differentiator: China’s leading manufacturing partner is funding a doubling of production capacity to 1.5 million units per month in 2025, with plans to reach 2 million by 2026 — all without raising additional capital. This supports the company’s ambitions for global expansion and ensures that supply can meet surging demand.
The company is also expanding into adjacent markets through acquisitions, including Dutch smart-lock firm LOQED and a stake in Romanian energy management startup Wattio, further broadening its portfolio. Smart locks are now integrated into Shelly’s ecosystem, targeting residential and commercial applications, including hotels and offices, while enabling secure, remote management of access points.
Global reach and community-driven growth
Shelly’s reach extends to over 100 countries, with robust growth in German-speaking regions and a SaaS revenue surge of over 200% in 2024. The company’s installer program, launched in 2024, has attracted over 1,200 professional installers across Europe, accelerating penetration into the B2B and energy management sectors.
Unlike German IoT company Tado and French smart-home provider Netatmo, Shelly distinguishes itself through its entirely local operation model, avoidance of cloud lock-in, and robust multi-protocol support. Its capital-light production expansion and open, hacker-friendly ecosystem set it apart in the increasingly crowded hardware IoT market.
Shelly’s products consistently earn 4-5-star ratings on Amazon and other major platforms. The company’s large, active online community provides free marketing and valuable user feedback, further fueling growth.
Shelly Group: A new blueprint for European hardware growth?
Shelly’s ascent highlights the growing influence of Central and Eastern Europe’s tech sector. While Poland leads the region with 14 unicorns, Bulgaria now joins Estonia and Czechia in hosting homegrown billion-dollar companies. Across Europe, the unicorn count reached 606 in the first quarter of 2025, with the UK, Germany, and France remaining dominant.
What sets Shelly apart is its public-market journey. The company raised just €2.2 million in its 2016 IPO, never took venture capital, and retains 59.45% insider ownership. This model contrasts sharply with the average European unicorn, which typically requires €150–200 million in VC funding before going public. Shelly’s path offers a compelling alternative for hardware-focused scaleups as global venture capital becomes scarcer.
Shelly Group is shaping the future of smart homes with a focus on energy efficiency, open standards, and user empowerment. It is also expanding into commercial and industrial IoT applications, ESG monitoring, and grid-scale energy management, positioning itself as a European champion in the global IoT circle.
