- SmartDrive Systems, a leader in video-based safety telematics and transportation intelligence, announced it raised $90 million led by TPG Sixth Street Partners
SmartDrive Systems — a leader in video-based safety telematics and transportation intelligence — announced it has raised $90 million in financing with TPG Sixth Street Partners leading the investment with participation from existing investors. Launched in 2005, SmartDrive is a pioneer and recognized innovator in video-based safety telematics backed by financial and strategic investors like NewView Capital, Oak Investment Partners, WABCO, and Michelin in addition to TPG Sixth Street Partners.
SmartDrive’s platform is able to capture vast amounts of data across vehicle systems to provide critical context and insights to commercial fleet operators thus leading to improved driver performance, safety and compliance. And SmartDrive’s advanced data-driven safety programs can be tailored for addressing the needs of a wide range of fleets, delivering lower collision and fuel costs, resulting in a compelling value proposition and clear return-on-investment.
“This is an exciting time at SmartDrive and in the transportation sector overall as adoption of video-based telematics continues to accelerate,” said SmartDrive Systems CEO Steve Mitgang. “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 is continuing to experience rapid growth, reflecting how video-based telematics delivered via an open, extensible platform is a priority for fleets. And the company has a proven track-record of innovation in telematics including industry-firsts such as multi-camera 360-degree views, extended recording, U-turn triggering, and use of analytics to enhance driver rewards influencing safety, fuel and retention. And fleets leveraging the SmartDrive program consistently achieve driver retention rates of 70% or higher and 9 miles per gallon (mpg), meaning it significantly exceeded industry averages of 20% driver retention and 6 mpg. Plus SmartDrive’s contracted units grew 48% and revenue grew 44% for the first half of 2019 compared to the same period in the prior year.
“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,” added 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 had 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. And Sidley Austin LLP acted as legal counsel for TPG Sixth Street Partners.
