Amazon Invests in Wi-Fi Startup Luma as Battle Over Home Internet Heats Up

Luma, one of several companies looking to reshape how home networks are managed, has landed an investment from Amazon as part of a fresh $12.5 million round of funding.

The series A round was led by Amazon and Accel Partners, with 500 Startups and former AT&T chief executive David Dorman also investing alongside existing backers Felicis Ventures, Base Ventures, BIP Capital, Relay Ventures and Webb Investment Network.

Luma joins fellow startup Eero as well as Google’s OnHub among a new generation of devices aiming to offer simpler and better Wi-Fi experiences than those offered by a traditional router.

Like Eero, Luma aims to offer better coverage through a mesh network of multiple devices and use a smartphone app to set up, monitor and control the network. In addition, Luma looks to offer home administrators a deeper view into the devices on the network and, in many cases, even the websites and apps being used.

As for Amazon’s role, the investment was made by the company’s Alexa fund, and Luma says it is working to see how its products might integrate with the company’s voice assistant. For example, one might be able to eventually voice commands through Alexa rather than using the Luma app.

Luma is still a few months away from shipping — it plans to do so in June — but has started beta testing in a few hundred homes, according to executive chairman Paul Judge. The company said that it has received 30,000 preorders for the Luma, which is being sold for $149 for a single unit or $299 for a three-unit pack.

The company said the new investment will help the company step up its hiring. It currently has about 20 people and recently hired Sonos and Apple veteran Matt Duffy as vice president of supply chain along with former AirWatch engineer Anil Jagarlamudi, who will serve as vice president of engineering.