In 2017, just as Anker Innovations was preparing for its IPO, core team member and CTO Wu Wenlong chose to step away and strike out on his own. His new venture? A bet on lighting, one of the most traditional sectors around.
Wu’s motivations remain hard to trace. He has never given an interview or spoken publicly, but his work speaks volumes: the company he founded, Govee, soared from zero to RMB 4 billion (USD 560 million) in annual revenue within seven years, powered by an RGB light strip that appeared to “breathe.”
In May 2025, Govee formally initiated IPO counseling, with China International Capital Corporation (CICC) as its advisor.
What’s especially striking is that Anker never saw Govee as a rival. Instead, in 2021, the company placed a vote of confidence in its former executive by making a RMB 40 million (USD 5.6 million) investment. It’s widely understood in the industry that Wu’s close ties to Anker played a decisive role in helping Govee scale quickly on Amazon.
In retrospect, Wu’s instincts were razor-sharp. While China already accounted for 90% of global LED light production, and established names like Opple and NVC Lighting were pushing into international markets, their products rarely tapped into internet-of-things ecosystems. Wu, meanwhile, brought ample capital and experience to the table, advantages few startups could match. From the outset, Govee had few credible challengers in the smart lighting niche.
Govee was in the spotlight from day one, largely due to its founder’s high-profile departure from Anker.
According to public records, Wu held a 5.6153% stake in Anker prior to its IPO. Even after dilution, his holding remained at 5.05%, making him one of the core shareholders.
It’s clear Wu had long been planning to go solo. Just six months after Anker filed for its IPO on the ChiNext board, Wu launched Govee in January 2017. He entered the RGB lighting space, focusing on decorative smart lighting, and introduced the brand Govee.
Unlike other entrepreneurs who emerged from Anker’s ecosystem, Wu had a major edge. As a founding partner with shares in a pre-IPO company, he had a generous capital cushion.
Since Anker went public in August 2020, Wu has cashed out twice, once in 2021 and later in 2023, netting a combined RMB 247 million (USD 34.6 million). His stake gradually decreased from 5.05% at IPO to 4.25%. As of March 31, Qichacha data shows his stake had dropped slightly to 4.19%, making him Anker’s fourth largest shareholder.
Anker, for its part, has been openly supportive.
In March 2021, the company announced its RMB 40 million investment in Govee, acquiring a 1.257% stake. In its filing, Anker stated the move was aimed at “expanding business scope, improving project quality, and strengthening overall competitiveness in line with strategic development goals.”
Govee’s growth was swift. In 2018, it released its first music-reactive RGB light strip. By 2019, Anker’s investment disclosure noted that Govee’s parent company had already reached RMB 422 million (USD 59.1 million) in annual revenue. Other media later reported that Govee surpassed USD 200 million (RMB 1.4 billion) in 2020.
At the time, cross-border expansion wasn’t exactly hot. Investors were skeptical, often dismissing lighting as a low-barrier category compared to other smart hardware products. Govee’s early USD 200 million in sales still didn’t meet some investor expectations.
Still, its Anker roots made it more bankable than peers. Govee’s first investors included Jiupai Capital, which backed its angel and seed funding rounds in 2020, per Qichacha. That same year, Cowin Capital led its pre-Series A round, and in 2021, as Anker invested, IDG Capital, Hillhouse Capital, and Eastern Bell Capital also joined in.
Even so, Govee hasn’t had to rely much on external funding. According to Leiphone, Govee posted RMB 4 billion (USD 560 million) in revenue and over RMB 400 million (USD 56 million) in profit in 2024, with RMB 600 million (USD 84 million) in cash on hand and strong cash flow. Online channels accounted for more than half of revenue, with offline contributing 20–30%. Govee had already entered all major retail chains. At this point, it’s a company most investors can’t get into.
In the smart home segment, it’s rare for a light strip brand to emerge as a top seller on Amazon.
According to Statista, the global smart home market was worth USD 31.2 billion in 2017 and growing at a 25% annual rate, particularly in North America. Back then, the competition was piling into high-demand categories like smart speakers and robotic vacuums. Light strips, seen as low-tech, were largely overlooked.
“At first, everyone thought there was no market for light strips. But Govee nailed both the product and the distribution,” one industry insider told Leiphone.
Govee knew how to differentiate. Its 2018 release, the H601X series of music-reactive strips, was a hit. Three years later, it topped Amazon’s Alexa-compatible LED strip category globally. Importantly, Govee was competing in the IoT space, not traditional lighting.
The company has been methodical in building out a smart ecosystem. Today, Govee has two major product lines. The main Govee line spans television backlights, smart lights, projectors, and smart appliances for use in party spaces, bedrooms, and more. In 2021, it expanded into small home appliances with the GoveeLife series, which includes portable ice makers and smart humidifiers.
Prices for its ambient lighting products range from USD 20–490. Govee has layered on innovations like artificial intelligence features, smart controls, and sensor integration. It reportedly boasts over 870 patents and supports 16 million color variations, music sync, and more, emphasizing interactivity and personalization.
Its Govee Home app connects with Siri, Google Assistant, and Homey. As of December 2024, the app had over 30 million users, per company data.
“Ambient lighting isn’t essential, but in the US and Europe, festive culture drives strong home decor demand,” one industry observer told Leiphone. With precise market targeting and rapid product innovation, Govee quickly became a consumer favorite overseas.
Much of Govee’s playbook is said to mirror Anker’s. It began with Amazon and gradually expanded into multichannel retail. After securing a foothold on Amazon, it rolled out to eBay, Walmart, and its own direct-to-consumer (D2C) site.
Its Amazon performance has been stellar. According to Pinpai Yiguan, Govee’s Amazon store posted over 300% annual growth for three straight years, with top products hitting USD 12 million in monthly sales. Several products consistently ranked among the bestsellers.
Beyond Amazon, Govee built a presence on eBay, Walmart, BestBuy, TikTok, and a D2C site, which now functions as a co-creation community. According to Similarweb, the site averages 1.6 million monthly visits.
Govee has also invested in branded collaborations. In late 2023, it partnered with the producers of Dune: Part Two to launch a co-branded smart TV backlight. The product sold over 33,000 units by May 2024, generating USD 3.58 million in revenue and entering Amazon’s top ten for LED strips.
Govee may very well be one of the most successful cross-border brands in recent years. Its path is hard to replicate, but it also shows how much unmet niche demand remains overseas. Even if most companies won’t become the next Govee, there may still be treasure buried in the margins.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Ou Xue for 36Kr.