Raspberry Pi: An Overview Ahead of the IPO

1 minutes reading time
Published 29 May 2024
Author: Emil Persson
Reviewed by: Kasper Karlsson

Raspberry Pi is a UK-based organization headquartered in Cambridge, producing a series of small, affordable single-board computers. These devices are intended to promote computer science education and are used widely in various applications, ranging from educational tools to hobbyist projects and industrial applications. The company is currently in the final stages of preparing for its IPO, which is set to take place in the near future. Join us for a closer look at Raspberry Pi, which has sold over 60 million computers in the last decade, and what we can expect from the upcoming IPO.

Key Insights

  • The organization: Raspberry Pi is made up of two entities: one is a charitable organization, and one is a for-profit company.

  • Diversified products: The company's products are diversified, and find application in a wide array of different projects.

  • B2B-focus: While the company does sell products to individual consumers, the bulk of its revenue is generated from B2B sales.

A Breakdown of the Company

Before we get down to what we know so far about the IPO, it's well worth taking a closer look at the organization as a whole. The Raspberry Pi Foundation was established in 2009 with its first product, the Raspberry Pi Model B, launching in 2012. The Foundation's mission is to make computing accessible to everyone, regardless of their background or financial status. By providing low-cost, customizable computers the organization aims to encourage people to learn programming, build projects, and develop technical skills. Besides these educational uses, the for-profit part of the organization also sells products to individual consumers and other businesses.

Raspberry Pi computers are credit-card-sized and feature a central processing unit (CPU), memory, and various input/output (I/O) ports, such as USB, HDMI, and GPIO pins. These devices typically run on Linux-based operating systems, with Raspberry Pi OS (formerly Raspbian) being the most commonly used. The open-source nature of the software and the affordability of the hardware make it an attractive option for educators, students, and hobbyists.

The product line has evolved over the years to include several models with varying specifications to cater to different needs. Notable models include the Raspberry Pi 4, which offers significant performance improvements over its predecessors, and the Raspberry Pi Zero, a smaller, more affordable variant for simpler projects. The Raspberry Pi 400 is a unique model that integrates the computer into a keyboard, providing a more user-friendly experience. The company has continuously updated its product line over the years in order to accommodate various use cases and educational purposes.

Use Cases for the Products

In education, Raspberry Pi computers are used to teach programming and computer science concepts in schools and educational programs worldwide. The Foundation also provides extensive resources, including tutorials, project ideas, and lesson plans, to support educators and learners. Additionally, Raspberry Pi computers are used in coding clubs and community groups. All in all, the company's products are the perfect tool for educators to use when teaching programming.

Beyond education, Raspberry Pi devices are popular in the maker community for a wide range of DIY projects. These projects can include home automation, robotics, media centers, and even weather stations. Thanks to the affordability and flexibility of the computers Raspberry Pis products are perfectly suited for experimentation and innovation, and more often than not it's only one's imagination that sets the limit of what's possible with the products.

Industrially, Raspberry Pi computers are used in various applications such as monitoring and control systems, digital signage, and IoT (Internet of Things) devices. Their low cost, reliability, and small form factor make them highly suitable for deployment in a variety of commercial environments.

The Structure of Raspberry Pi

While we've previously mentioned this in passing, it's something that needs a closer look in order to be able to fully understand the organization. First and foremost: the foundation. This is the charitable arm of the company which works with students and educators. It is funded through a variety of different means, including charitable donations, Gift Aid from the commercial arm of the organization, and payment for delivery of educational services. The second part of the company is Raspberry Pi Trading LLC. This is the for-profit arm of the company that focuses on commercial operations.

A Majority of Revenue is From B2B-Sales

While Raspberry Pi may have started as a small startup with products aimed at educational use, this has slowly but surely shifted over the years. Companies have seen what is possible with the company's small computers, and have increasingly started using them in their own products. This in turn means that roughly 70% of the company's revenue is generated from B2B sales. However, individual consumers can also purchase the products through retailers or directly from Raspberry Pi. Some of the company's customers include Samsara, PlayAGS, and SharkNinja.

Where Will Raspberry Pi Be Listed?

Unless something completely unexpected happens, Raspberry Pi is going to list its shares on the London Stock Exchange (LSE). This is something that the exchange in and of itself is very positive towards, but not just for the simple fact that it means an inflow of capital into the exchange. The LSE has in recent years only been able to stand by and watch as British tech companies opt to list their shares in the U.S. in order to increase visibility and tap into larger pools of capital. The clearest example of this is the UK-based semiconductor company Arm Holdings, which went public on the Nasdaq in 2023.

Targeting a Valuation of $635 Million

While we're unlikely to know for certain what the company is going to be valued at, there is some information regarding this. In official preliminary notice of its intent to list its shares on the LSE, the company is targeting a valuation of roughly £500 million ($635 million).

Set to Be Listed During the Summer in 2024

According to the latest information, Raspberry Pi is set to conduct its IPO on the LSE in June of 2024. This is if nothing unexpected happens, but as of the time of the writing of this article, that is what management of the company is aiming for.

Summarizing Words

All in all, the upcoming listing of Raspberry Pi is set to take place in the imminent future barring any major hiccups along the way. While it's far from being the highest-profile tech IPO in recent years, it's likely to be one of the more interesting on the LSE this year.

Why are finance professionals around the world choosing Quartr Pro?

With a broad global customer base spanning from equity analysts, portfolio managers, to IR departments, the reasons naturally vary, but here are four that we often hear:

Increase productivity

Eliminate hours of searching for specific data points buried deep inside company material.

Get a one-stop-shop solution

Everything you need for qualitative public market research in one single platform.

Uncover rare insights

Understand the qualitative aspects of entire industries or specific companies.

Leverage the power of AI

Incorporate AI functionality into your daily workflow.