SmartDrive Secures $90 Million in FinancingSeptember 16, 2019 9:17 pm Leave your thoughts
SmartDrive Systems, a San Diego-based provider of video telematics services, has secured $90 million in financing, the company announced.
TPG Sixth Street Partners led the investment, with participation from existing investors.
Established in 2005, SmartDrive is backed by leading financial and strategic investors, including NewView Capital, Oak Investment Partners, WABCO, and Michelin, in addition to TPG Sixth Street Partners. The company’s platform captures vast amounts of data across vehicle systems to provide critical context and insights to commercial-fleet operators, leading to improved driver performance, safety and compliance, according to the company.
“This is an exciting time at SmartDrive and in the transportation sector overall as adoption of video-based telematics continues to accelerate,” stated Steve Mitgang, SmartDrive CEO. “Building on our pioneering video-based safety program, our vision of an open platform powering best-of-breed video, compliance and telematics applications is garnering significant traction across a diverse range of fleets given the benefits of choice, flexibility and a lower total cost of ownership. The investment from TPG Sixth Street Partners and our existing investors will fuel continued innovation in areas such as computer vision and AI, while also enhancing sales and marketing initiatives and further international expansion.”
SmartDrive continues to experience rapid growth, reflecting how video-based telematics delivered via an open, extensible platform is a priority for fleets, the company noted. Fleets leveraging the SmartDrive program consistently achieve driver-retention rates of 70% or higher and 9 miles per gallon (mpg), significantly exceeding industry averages of 20% driver retention and 6 mpg, according to the company.
As evidence of market momentum, SmartDrive’s contracted units grew 48% and revenue grew 44% for the first half 2019 compared to the same period in the prior year, according to the company.
“SmartDrive is a market leader in the large and expanding transportation safety and intelligence sector and we are pleased to be investing in a growing company led by such a talented team,” noted Bo Stanley, partner and co-head of the Capital Solutions business at TPG Sixth Street Partners. “SmartDrive’s proprietary data-analytics platform and strong subscriber base put it in a great position to continue to capitalize on its track record of innovation and the broader secular trend of higher demand for safer and smarter transportation.”
PJT Partners served as exclusive financial advisor and placement agent and Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to SmartDrive in connection with the financing. Sidley Austin LLP acted as legal counsel for TPG Sixth Street Partners.Tags: Video Telematics
Categorised in: Fleet
This post was written by Telematics Talk Staff