Telogis Raises $93 Million From Kleiner Perkins to Track FleetsDouglas MacMillan
Telogis Inc., a developer of software to track commercial vehicles, raised $93 million from investors including Kleiner Perkins Caufield & Byers, as it prepares to hold an initial public offering as soon as 2014.
Telogis is profitable and expects to generate about $90 million in sales this year, Chief Executive Officer David Cozzens said yesterday in an interview. The company raised its first institutional funding in its 12-year history after opting against an earlier IPO, Cozzens said.
Through deals with Ford Motor Co. and Volvo Trucks North America, Telogis is equipping commercial vehicles with technology to track the whereabouts and workloads of employees in the field. The company develops software for industries including construction, telecommunications and catering.
“More and more vehicles and mobile devices are GPS and wireless enabled,” Cozzens said. “It’s transforming the way these companies operate.”
Telogis, based in Aliso Viejo, California, hired Morgan Stanley earlier this year to explore a potential share sale and chose instead to raise private funding, Cozzens said. The funds will go toward developing new software and striking more deals with vehicle manufacturers, he said.
Kleiner Perkins, known for early investments in consumer-Internet companies Amazon.com Inc. and Google Inc., has pushed into business software with investments in electronic medical records startup Practice Fusion Inc., monitoring-software provider AppDynamics Inc. and business-application manager Apperian Inc.
Ryan Popple, a partner at Kleiner Perkins, is joining Telogis’s board and said he plans to help the company capture a larger market share ahead of an IPO.
“We like being involved in companies at this stage and giving them capital and the time to have their model perfected before they address the public market,” Popple said in an interview.
The Menlo Park, California-based venture firm has had recent success in location software as well. The firm was an early backer of Waze, a smartphone-mapping app, which Google Inc. bought for about $1 billion earlier this year.