Level Home Acquires Dwelo & Raises $100M

Smart Home M&A Activity: Level Home Acquires Dwelo

Recent months have seen considerable merger and acquisition activity within the smart home industry. Following Generac’s purchase of Ecobee, Level Home has announced its acquisition of Dwelo.

This announcement coincides with Level Home securing a Series C funding round exceeding $100 million, spearheaded by Cox Communications and including Walmart as a participant. The total funding raised by Level now amounts to $171 million.

Level Home's Funding and Initial Product

Walmart, alongside Lennar, was a significant investor in Level Home’s $71 million funding round announced upon the company’s initial launch in 2019.

At that time, Level’s flagship product was the Level Lock, a smart lock engineered to resemble a traditional lock, prioritizing ease of installation and compatibility with the HomeKit ecosystem. The lock offered keyless entry via iPhone or Apple Watch.

Dwelo's Focus on the Rental Market

Dwelo was initially covered by tech publications two years prior, when the company secured $4.9 million in funding. Their core offering caters specifically to the rental market.

Dwelo provides solutions for apartment managers and owners, enabling centralized control of various smart devices across multiple units within a building.

Synergies and Future Plans

“Integrating Dwelo into Level allows us to deliver a unified experience, combining elegant hardware design with a robust SaaS platform,” stated Level CEO John Martin. “This empowers residents with greater control, convenience, and personalization options for their homes.”

Martin further emphasized that this acquisition represents the next evolution in smart home technology for both property owners and tenants, realizing the company’s original vision.

Vertical Integration and Market Expansion

The acquisition appears to be a strategic move towards vertical integration, potentially incorporating Level Locks into Dwelo’s existing offerings for property managers.

Expanding into the apartment building sector represents a logical progression for Level Home, given the competitive landscape of the smart lock market. Smart home devices have historically targeted homeowners, who face fewer installation restrictions.

Beyond the benefits for residents, property owners are likely motivated by the ability to remotely manage access control and enhance building security.