Proving the Business Case for the Internet of Things

Sigfox raises $115m in D series funding

Steve Rogerson
February 11, 2015
 
French IoT connectivity company Sigfox has completed a round of fundraising totalling $115m from financial and strategic backers in Europe, the USA and Asia. The company plans to use this new equity round to accelerate worldwide roll out of its dedicated IoT network in Europe, Asia and the Americas.
 
The composition of investors, which includes big industrials and telcos, is said to be unique in French technology history.
 
“This record $115m round is a significant step in the development of our network’s coverage all around the world,” said Anne Lauvergeon, Sigfox’s chairman. “The trust of our investors and the dynamism of Sigfox’s team allow us to strengthen our position as the world leader in IoT communications.”
 
The company’s network provides two-way connectivity to billions of objects. Incorporated in 2009, Sigfox has pioneered the low-power wide-area (LPWA) connectivity space and has become a reference player in IoT.
 
Following deployment in France, Spain, the UK, Netherlands and soon the USA, Sigfox says it will use this new equity round to accelerate its worldwide network roll-out in Europe, Asia and the Americas with the support of international telecom operators Telefonica, SK Telecom and NTT Docomo Ventures. Also on board are financial sponsor Elliott Management and industrial partners GDF Suez, Air Liquide and Eutelsat. These partners join the existing financial investors that have been Sigfox's shareholders since 2011.
 
“Elliott is very pleased to be part of this equity round in the leading IoT dedicated-network company,” the firm said in a statement. “We look forward to contributing actively to Sigfox’s deployment in the USA and worldwide.”
 
For GDF Suez, the offer will enable developments in the fields of energy management, energy efficiency and sustainable cities: three priority areas in the group’s strategy.
 
Aliad, the corporate venture capital arm of Air Liquide Group, said in a statement that “Sigfox’s technology and network, thanks to its significant deployment, perfectly suits our needs for a part of our smart devices, especially in terms of energy efficiency for long-distance communication”.
 
Jean-Hubert Lenotte, director of strategy at Eutelsat, added: “Eutelsat’s investment in Sigfox signals our conviction that satellites can accelerate the development of the IoT market, both in terms of reach and reliability. Eutelsat is constantly looking at innovative developments that push back the boundaries of our markets, add value for our customers and anchor satellites in an increasingly connected economy. Sigfox has assembled a unique and compelling solution for the IoT market. We look forward to contributing to their growth and participating in their experience and entrepreneurial development.”
 
Existing financial investors, Elaia Partners, iXO PE, Partech Ventures and Idinvest, confirmed their support for the company and its management by reinvesting in the current round. Bpifrance also strengthened its holding in Sigfox and confirmed its commitment to the company through its Ambition Numérique and Large Venture funds.
 
“We strongly believe Sigfox can be a future global player in the IoT, and we are delighted to accompany its growth and increase our investment,” said Paul-François Fournier, director of innovation at Bpifrance.
 
The round comprises a first close of $93m and a greenshoe of $22m that will allow new strategic partners to join the share capital of Sigfox in the next few months. Lazard acted as financial advisor to Sigfox, with Granrut Avocats acting as legal advisor.
 
“Since creating the LPWA space three years ago, Sigfox has become the leading global solution for IoT connectivity,” said Ludovic Le Moan, CEO of Sigfox. “This investment round recognises those achievements and highlights the company’s potential to become the worldwide standard for small-message-based connectivity.”