SINGAPORE - Singapore tech-for-kids start-up myFirst is in talks with potential investors to raise funds ahead of a possible listing in the US, following a partnership with mainboard-listed plastics manufacturer Fu Yu Corporation.
myFirst co-founder Brian Tan told The Straits Times on April 12 that the Singapore-headquartered start-up, which is closing a pre-Series A funding round, has been approached by underwriters for an initial public offering (IPO) in the US. myFirst is currently valued at US$20 million (S$27.2 million).
Pre-Series A funding is often secured by early-stage start-ups, prior to Series A funding when companies are expected to have a plan for a business model that will generate long-term profits.
“Although we are an early-stage start-up, we have cash flow, a global presence and a good growth story,” Mr Tan said, without elaborating on the potential IPO timeline and the amount of money the firm is seeking to raise.
He added that the company, which has 100 employees, is choosing not to list on the Singapore Exchange (SGX) due to its low liquidity, weak valuations and a lack of interest in tech start-ups from investors here.
Founded in 2017, myFirst is known for its kids-friendly platform that enables children to socialise through its range of wearable products, such as smart watches, cameras and headphones. Parents are able to track their children’s activities and location through a mobile application.
The start-up, which expanded to the US in 2023 and has a presence in 44 countries, appointed SGX mainboard-listed Fu Yu as its exclusive contract manufacturer on April 4 in a five-year deal estimated at $75 million.
Fu Yu, which specialises in high-precision plastic products, will manufacture $15 million worth of myFirst’s products for the first year.
Mass production of myFirst’s products will commence at Fu Yu’s factory in Tuas in April, while component production will also be done across the manufacturer’s six facilities located across Singapore, Malaysia and China, depending on myFirst’s requirements.
Fu Yu will also be supporting myFirst through its venture arm, which will provide the start-up with supply-chain management solutions, including cash and inventory management.
Its group chief executive David Seow said in a statement on April 4 that the partnership with myFirst is the company’s first venture into the manufacturing of internet-connected smart devices.
He added: “We are now well poised to meet the advanced manufacturing requirements of our customers, and will continue to build on our strong record and maintain a healthy project pipeline.”
In the 2023 financial year, Fu Yu saw a 20.7 per cent decrease in revenue to $190 million from $240 million a year earlier. Gross profit also fell by 64.6 per cent to $13.3 million, from $37.6 million in the preceding year. The firm’s controlling shareholder is Pilgrim Partners Asia, which acquired a 29.8 per cent stake from Fu Yu’s founders in 2021.
Fu Yu’s deal with myFirst is expected to help the start-up expand its footprint in North America, scaling up from 4,000 to more than 20,000 locations, including the outlets of prominent US retailers such as Walmart, Costco and Best Buy.
MyFirst’s Mr Tan said the start-up will be utilising Fu Yu’s production capacity and precision-engineering expertise to scale up production and enhance the miniaturisation of myFirst’s products, which will improve the user experience.
He said the firm is expanding in the US as it already has a strong presence in South-east Asia.
“In the US, parents are particularly worried about their children’s safety both online and in real life, so we want to help as many families as possible,” he said.
