Amazon is backing Ecobee, a smart thermostat company, just days after buying Ring

Key Points
  • Energy Impact Partners and Amazon Alexa Fund are among the investors in a $62 million round of funding for Ecobee.
  • Toronto-based Ecobee makes smart thermostats that compete with Nest and Honeywell products.
  • The deal follows Amazon's acquisition of Ring, a maker of smart-home-security devices.
Ecobee smart thermostat
Richard Lautens | Toronto Star | Getty Images

Smart thermostat maker Ecobee raised around $62 million (CA$80 million) in a series C round of funding from investors including the Amazon Alexa Fund, the Toronto-based company told CNBC.

The deal comes just one week after Amazon acquired video doorbellmaker Ring in a deal reportedly valued at $1 billion. Amazon consequently made plans to stop selling competing products made by Google-owned Nest.

Ecobee has designed its smart thermostats to work in conjunction with software and systems from Amazon, Apple, IFTTT, Google and Samsung. Additionally, it sells the devices on Amazon and in stores such as Apple, Best Buy, Home Depot and Lowe's.

The Ecobee 4, the company's latest smart thermostat, has built-in Alexa, which allows users to just tell the Ecobee 4 how to adjust the temperature, without fussing with controls or remotes. They can also ask their thermostats for a weather or news update, or use them to order an Uber or a pizza.

Amazon spends $1 billion on Ring
Amazon spends $1 billion on Ring

"All of our products are built around helping customers save money and conserve energy," said Ecobee founder and CEO Stuart Lombard. "But we also have a vision to change the smart home from a collection of hard-to-configure devices to something with a better outcome for consumers."

Lombard said Ecobee plans to use its newly raised capital to expand into different smart home categories. The company's forthcoming Switch+ is an internet-connected light controller that will also feature built-in Alexa.

Lombard declined to name other products in the works.

Another investor in Ring, Energy Impact Partners, led Ecobee's series C round, joined by earlier backers in the company and a number of utilities. The series C round included some capital raised through a secondary sale of shares. With her fund's investment, EIP Partner Lindsay Luger has joined the board of Ecobee.