Samsara raises $50m to handle rapid growth
March 28, 2018
California-based IoT company Samsara has raised $50m in funding so it can scale to handle the 1700 new customers it is gaining each quarter. The growth capital comes from investors Andreessen Horowitz and General Catalyst.
The funding comes as Samsara's transportation business adds over 1700 customers each quarter and positions the company to scale support and customer enablement rapidly while investing in technology innovation for its users.
Samsara offers its transportation customers a complete data platform for their operations, combining real-time GPS tracking, wireless sensors, video and mobile applications with intuitive software to improve efficiency.
With the funding, Samsara will scale customer support and enablement to serve thousands of new customers, and will expand its platform with sensors, software and AI-driven data analytics to bring business value to its users. The company plans to grow from 300 employees to over 550 by the end of the year and will more than double its California-based engineering and customer support teams.
"Samsara is onboarding thousands of new customers each quarter as organisations increasingly adopt IoT in their fleets," said Sanjit Biswas, co-founder and CEO of Samsara. "We've received an enormous volume of product ideas and feedback from our users, and over the past six months we've launched three new product families and dozens of software features. The business impact that our customers report – from lower operating costs to increased safety and customer service – has been resounding. This new funding will allow us to accelerate our pace of innovation even further, and to scale our organisation to support even more new customers."
Samsara's customer-focused product development has translated to explosive growth in the market with sales growing over 250% annually, creating a large and fast-growing base for the company's technologies. Customers are joining the company from across a range of industries, including:
- Food and beverage distributors monitoring food safety during transit with wireless temperature and cargo sensors.
- Trucking companies reducing distracted driving and increasing driver safety with gamification and in-cab cameras.
- Construction firms optimising inventories of generators and heavy equipment.
- School districts helping parents locate lost children by tracking bus passengers in real time.
- Cities helping residents navigate winter storms by publishing live snowplough paths.
The funding builds on Samsara's already-strong financial position, providing the company with more than $100m of cash on hand to make long-term product investments and provide support to its rapidly growing customer base. The investment brings Samsara's total capital raised to $130m and values the company at $1.4bn.
"Our customers value innovation, but also want a stable partner who will support them over the long term," said Kiren Sekar, VP of product management at Samsara. "This new funding enables us to bring cutting-edge technologies to our users while ensuring that we have the financial security to grow with our customers for years to come."
Samsara specialises in enterprise IoT. Its platform combines plug-and-play hardware with scalable cloud-based software, revealing insights that improve operational efficiencies for thousands of customers from emerging businesses to Fortune 500 enterprises. The company was founded by Sanjit Biswas and John Bicket, co-founders of Meraki. Headquartered in San Francisco, it has more than 300 employees and has raised $130m from Andreessen Horowitz and General Catalyst.