Xyte raises $30M so any hardware maker can run devices as a subscription

A platform that lets hardware OEMs and their channel partners turn devices into subscription services: bundling equipment with software and services, charging by ownership length or usage, and managing and tracking the devices as a service.

$37M total since 2019, including the $10M debt line

CEO Omer Brookstein worked at device maker Crestron building high-end AV systems that proved very expensive to shift. Watching sales stall there convinced him a service model could fit devices — and he co-founded Xyte in 2019 with CTO Boris Dinkevich.

Xyte opened a Silicon Valley office in late 2023 and raised the $20M Series A plus $10M BlackRock debt in January 2024. The debt line exists because OEMs moving from one-time to recurring revenue face cash-flow gaps while still paying bills of materials — Xyte can help bank the transition. Customers discovered consumer uses on their own: Schneider Electric sells its Wizer connected home heating on Xyte-powered subscriptions.

As of January 2024 the company is expanding in the US with Intel Capital's backing, with ARR of $1M and a stated path to triple it within a year. Customers number in the thousands; valuation was not disclosed beyond 'reasonable' in the current market.

Hardware's decline is structural — saturation, slower spend cycles, software-era innovation — making recurring revenue the obvious pivot, and almost no OEM can build subscriptions alone.

The debt tranche is tailored to the model's real friction: OEMs still owe bills of materials while revenue turns recurring, so Xyte can finance the transition itself.

Marquee strategic investors (Intel Capital, Samsung Next) are also channel: Intel's NUC group already articulated the customer logic — businesses want outcomes, not hardware capex.

Customer pull beyond the B2B wedge (Schneider Electric's Wizer heating subscriptions) suggests the platform generalizes from connected trucks to laptops.

When a revenue model migrates — sales to subscriptions — the biggest winners are often picks-and-shovels platforms that let incumbents switch without building competence in-house.

As of January 16, 2024, Xyte is using the Series A to expand its US business and the BlackRock line to subsidize customers' transitions to subscription models, with named customers Intel, Schneider Electric and Rebar and 'some recognizable names' in its pipeline.