Sigfox closes â‚¬150m funding round
November 24, 2016
Sigfox is closing its Series E funding round of €150m to accelerate the expansion of its global network and reach worldwide coverage.
Salesforce, Total, Henri Seydoux, Alto Invest, Swen CP and Tamer Group will join Sigfox as new investors. Existing shareholders including BPI France, Elliott, Intel Capital, Air Liquide, Idinvest Partners and IXO will also re-invest in the company. Additional new investors are also expected to join this financing round shortly to reach the €150m level.
"We strongly believe that Sigfox has unlocked the IoT connectivity bottleneck and will bring billions of objects online in the near future", said Franck Tuil, Elliott's senior portfolio manager. “Its cost effective, easy to use, open platform is set to become the standard for low-power object connectivity, bringing massive productivity gains to the corporate world and everyday benefits to end customers.”
The IoT space opens up new and exciting opportunities by connecting the physical world to the internet. With its global network, Sigfox aims to give a voice to billions of objects, allowing them to play a pivotal role in our social and economic development.
In five years, Sigfox has built a global wireless network that provides simple, efficient connectivity, enabling devices to connect to the cloud at low cost and using little energy.
With more than ten million objects registered on its network and coverage spanning 26 countries, Sigfox says it is reinforcing its position as a global leader in the IoT space. This new round of funding will enable the company to expand its international network to 60 countries by 2018 and reach financial breakeven point.
The company sees Industry 4.0 as one of the main growth paths driving the development of the IoT. The need for predictive maintenance as well as the continued evolution of its business model towards more services could be some of the reasons behind Total's decision to join other shareholders supporting Sigfox's international development.
"We are happy to accompany the development of Sigfox because the technology it offers can be decisive to accelerate the deployment of the internet of things," said Patrick Pouyanné, chief executive officer of Total. “It is their advance acquired on the market in a short time and their capacity to accelerate the deployment of large-scale IoT solutions that motivated our investment. This will improve the performance and operational safety of industrial activities, reduce operating costs, but also be used to serve customers."
Another key opportunity is the optimisation of industrial processes leveraging big data. For this reason, Sigfox plans to integrate with Salesforce's IoT cloud, unlocking insights from the connected world that empower any business to take the right action, for the right customer, at the right time across global consumer and business use cases. By connecting billions of objects and events, Sigfox and Salesforce can facilitate deep and meaningful customer experiences via its global, homogenous and scalable network.
Intel Capital, Idinvest Partners and IXO PE, which are historical shareholders of Sigfox, actively participated in this round.
"I joined Sigfox 18 months ago because of the incredibly powerful vision of its founders and the unique positioning of the company as a fundamental enabler of the IoT revolution,” said Xavier Drilhon, deputy CEO of Sigfox. “Our rapid international expansion made possible thanks to the support of our local operators, as well as the growth of our ecosystem, were key to securing this new fundraising. This will allow the company to accelerate the deployment of its network from 26 countries today to over 60 within the next two years, representing 90 per cent of the worldwide GDP."
The round comprises a greenshoe that will allow new strategic and financial partners to join the share capital of Sigfox shortly. Lazard and Goldman Sachs acted as financial advisors to Sigfox, with Skadden acting as legal advisor and Callisto acting as financial advisors to the management.
Founded in 2010 by Ludovic Le Moan and Christophe Fourtet, the company is headquartered in Labège near Toulouse, France's IoT Valley. Sigfox also has offices in Paris, Madrid, Munich, Boston, San Francisco, Dubai and Singapore.