French startup Sigfox raised a Series B round of $20.6 million (€15 million) from IDInvest and BPIFrance. Existing investors (Elaia Partners, Partech Ventures, Ixo and Intel Capital) also participated. As a reminder, Sigfox wants to create an alternative cellular network specifically dedicated to connected objects.
Compared to traditional cellular networks, this network can cover a larger area and is very energy-efficient. Previously, the startup had raised $2.8 million (€2 million) and $13.7 million (€10 million).
The company wants to create a global network that uses the same protocol everywhere. This network can be used, for instance, to monitor parking spots, communicate if your bus is approaching and more. And if you develop smart parking spot devices, you only need to support one network. Finally, it will cost you the same to take advantage of this network in every country.
Sigfox already has a well-established network in France, and is working with local partners in Spain, Russia and the U.K. For example, in Spain, the company works with Abertis, a leading company when it comes to telecom infrastructure. By adding a layer to existing networks, Sigfox will be able to keep its costs down.
The funding will be used to expand the team, and in particular the support, sales and marketing teams. At the same time, the company plans to keep investing in research & development.
In short, the company’s two key advantages are that it’s creating a standardized and low-energy network. However, it has yet to prove that it can replace more traditional cellular networks.