Tondo Smart Ltd.
Smart infrastructure, IoT and smart-cities solutions | Tel Aviv Stock Exchange
Company Profile
Tondo Smart Ltd. is an Israeli technology company founded in 2018 that develops and manufactures management and control solutions for smart infrastructure. The company provides end-to-end Infrastructure Intelligence solutions, including hardware (controllers, sensors, smart streetlights), software (a CMS management platform), and SaaS services for ongoing operation. Fact
Revenue Model: a combination of hardware sales, recurring SaaS revenue (ARR), and integration services.
Headquarters: Israel | Subsidiary: Tondo Smart US Inc. (100%) | Reporting Currency: ILS (₪)
Business Segment & Competitive Landscape
The Smart Cities Market
The global smart-cities market is estimated at approximately USD 700 billion (2025), with industry forecasts pointing toward USD 1.4 trillion by 2030 (CAGR ~15%). The smart-lighting segment is growing even faster — a reported CAGR of 20.9%, with roughly 32.9 million smart streetlights installed by 2024 and a projected 85 million by 2029. Fact
Competitive Structure
- Major players: Signify (Philips Lighting), Telensa, Cimcon, Quantela, Gewiss, Tvilight, Flashnet (inteliLIGHT).
- Tondo's positioning: end-to-end offering (hardware + software + SaaS), Edge AI integration, Dual-Use capability (defense + civilian).
- Barriers to entry: patents, regulatory approvals, in-field installations, and municipal relationships.
Supportive Macro Trends
- Accelerating urbanization — 57.7% of the world's population lives in cities (2024).
- Phase-out of mercury lamps — mandatory transition to LED.
- European regulation: NIS2 and the Cyber Resilience Act.
- Rising government and defense demand for IoT.
Growth Drivers
- U.S. market entry: establishment of Tondo Smart US Inc., participation in the U.S. Round Table and Smart City Barcelona — building international presence. Assumption
- Acquisition of Aero Connected Cities (2025): expansion into 5G, Public Safety, and wireless network services — broadening the TAM. Fact
- Shift toward SaaS: growing recurring revenue (ARR) alongside hardware sales — improving revenue quality. Estimate
- Defense Tech / Dual Use: defense solutions for acoustic-threat detection, drones, and surveillance — a growing market. Fact
- Low-Altitude segment: solutions for managing low-altitude airspace (Remote ID, cUAS) — an emerging market. Assumption
Competitive Position (Economic Moat)
How to Think About This Company
A full How to Think About This Company analysis for TONDO-SMART — covering the underlying business, the key variables, the analytical pitfalls a surface read tends to miss, and what separates professional thinking from noise — is available within the Family Office content.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible. The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
Balance Sheet Analysis
| Item | 31.12.2024 | 31.12.2025 | Change |
|---|---|---|---|
| Cash | 1,239 | 4,836 | +290% |
| Trade Receivables | 5,335 | 7,161 | +34% |
| Total Current Assets | 10,997 | 17,238 | +57% |
| Total Non-Current Assets | 14,879 | 14,195 | -5% |
| Total Assets | 25,876 | 31,433 | +21% |
| Equity | (8,466) | (5,684) | Improved |
🚨 Negative equity: despite improvement (from ₪-8.5M to ₪-5.7M), equity remains negative — meaning liabilities exceed assets. This is a structural item that warrants close monitoring. Recent capital raises (₪5M in 2025) demonstrate the company's ability to access capital, but also indicate ongoing dilution.
Cash Flow
| Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | (2,166) | (2,809) | 19 |
| Investing Cash Flow | (1,378) | (1,210) | (1,488) |
| Financing Cash Flow | 5,004 | 2,249 | 5,066 |
| Net Change | 1,460 | (1,770) | 3,597 |
| FCF | (3,544) | (4,019) | (1,469) |
⚠ Negative FCF for three consecutive years — an item to monitor. That said, FCF has improved materially (from ₪-4M to ₪-1.5M), and operating cash flow turned positive for the first time. Continuation of this trend would be a meaningful inflection point in 2026.
Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" Every Bakshi Finance analysis passes through six lenses. The text below is not a judgement — it is a map of the questions this analysis is intended to answer.
The analysis is based on an internal multi-factor analytical framework used in professional portfolio management. The framework maps the questions; the answers appear woven through the analysis above.
What the lens is not: there is no rating, no score, no comparison between this company and another, and no preference expressed. The same six questions are asked of every company on the site — what varies is the answers, not the instrument.
This framework is intended to structure analysis, not to produce an investment conclusion.
Key Observations
This summary is not a recommendation. It is a factual list of what the analysis has identified. The decision rests with the client.
Disclosure — Family Office
Bakshi Finance operates as a Family Office serving qualified investors only. Mr. Yaron Bakshi held a licensed investment-advisory practice from 2008 through 2023. As of the date of this publication, the firm does not hold an investment-advisory, investment-marketing or portfolio-management licence. This document is provided for research and professional education purposes only. Nothing herein constitutes a recommendation to buy, sell, hold or take any action with respect to any security. Nothing herein is a substitute for personalised advice based on an individual’s circumstances. All decisions remain the sole responsibility of the investor. Past performance is not indicative of future results.