"CEO-Interview: Von Bulgarien in den SDAX - 8.700% mit Shelly" – OAWS-Deep-Dive

The podcast features an in-depth interview with Wolfgang Kirsch, co-CEO of Shelly Group, conducted by host Timon Wunderlich. Shelly, formerly known as Alterco, was founded in Bulgaria in 2003 as a software company serving telecoms and banks. After selling its core business around 2016, a small team led by founder Dimitar Dimitrov pivoted to smart home hardware, launching their first smart relay in 2018. The key differentiator was eliminating the need for a hub, offering Wi-Fi-connected devices for as low as 10 euros, with local intelligence that works without internet connectivity.

Shelly's growth was largely community-driven, particularly in the DACH region, where organic Facebook groups formed with up to 140,000 members without company instigation. This grassroots adoption by tech enthusiasts — who discovered creative use cases beyond basic light switching, including floor heating, garden irrigation, and garage doors — gave the company a marketing advantage that Kirsch acknowledges is nearly impossible to replicate in new markets. The company now has approximately 120 products across categories including light control, heating/climate management, sensors, security, energy monitoring, and a new range of smart circuit breakers.

On the business model, Kirsch explains that hardware durability (estimated 10-30 year product life) is offset by consistent customer expansion: cloud data shows existing users add an average of two devices per year, generating an estimated 5 million device sales annually from the existing customer base alone. Shelly currently earns 25% EBIT margins — exceptional for a pure hardware company — and is cautiously building recurring software revenue, currently at 800,000€ from a premium app tier, targeting 2M€ in 2026. B2B fleet management software for hotels, retail chains, and commercial properties is identified as a significant future revenue stream.

Kirsch details significant structural challenges with Amazon as a sales channel. Amazon's algorithmic pricing — which automatically matches the lowest price found anywhere — creates a race to the bottom that erodes margins. An incident at the start of 2025, where Amazon sold a 14€ relay for 9.99€ and then demanded increased compensation, led Shelly to effectively exit direct Amazon sales. The company also faces working capital strain: it pays Chinese suppliers 60 days in advance but collects from customers after 100-150 days, a gap that was never prioritized historically but is now being actively addressed with a new CFO and negotiations for Chinese government-subsidized supplier credit programs.

Geographically, the DACH region dominates, but Shelly is expanding with local teams in eight European countries. The US market is described as opportunistic but showing promise, with a potential major retail partnership in final negotiations. Regarding capital markets, Kirsch explains the long journey from Sofia Stock Exchange to Frankfurt Xetra listing (2022) and recent SDAX inclusion, framing these as trust-building milestones rather than immediate stock price catalysts. The stated ambition is TechDAX inclusion, which would place Shelly alongside companies like SAP. Kirsch's leadership philosophy centers on hiring people better than himself in each domain and creating development programs, including sending young talent to INSEAD.