A deal to equip General Motors’ commercial vehicles with software that links operation centers with far-flung fleets is the latest harbinger of potential that led backers last year to invest $93 million in Telogis Inc.’s initial funding round.
The Aliso Viejo-based company will integrate its telematics software into GM’s OnStar connectivity system, which has more than 6.5 million subscribers in the China, the U.S., Canada and Mexico.
The offering, which will roll out in various GM models in coming months, can provide commercial fleet operators with information on a vehicle’s location, odometer reading, fuel consumption and other data.
Telogis uses GPS technology and proprietary software to help commercial fleets create better routes, track shipments and deliveries, manage mobile workforces, and smooth out work flows.
OnStar is a standard feature in some GM vehicles and an added offering on others. Telogis’ software will require additional fees, which vary based on fleet size and specific services purchased, such as routing, navigation and mobile applications.
The deal calls for Telogis to split its software subscription fees with the Detroit automaker, which sold about 9 million vehicles around the world in 2013 to rank No.2 in car sales last year behind Toyota Motor Co. in Tokyo.
“This partnership with GM really takes our [original equipment maker] strategy and business to the next level,” said Susan Heystee, executive vice president of worldwide sales at Telogis. “We believe that we’re going to continue to see additional OEMs adopting this strategy.”
Fleet management services are increasingly in demand among GM’s fleet customers as businesses look to deploy technology to rein in costs, according to GM spokesperson Robert Wheeler.
“This is the next step in expanding our connected vehicle service offerings to help fleets operate efficiently and identify cost savings,” he said.
The GM deal is the fourth partnership with a large maker of commercial vehicles for Telogis, which has been one of the fastest-growing companies in Orange County the past few years. Executives earlier told the Business Journal they expected sales to hit $100 million for 2013.
Other Customers
The company reached an agreement a year ago with Volvo Group’s North American truck division to develop fleet management services using its cloud-based technology. The Gothenburg, Sweden-based company—one of the world’s largest bus, truck and construction equipment makers—sees more than $45 billion in annual sales.
A month later Telogis signed a deal with Manitowoc Co. to power its upgraded telematics offering, called Global CraneSTAR, that monitors crane operation data and transmits the information back to the company’s Wisconsin headquarters.
Manitowoc has annual sales of more than $3.9 billion.
Telogis’ first significant deal came in 2011 when it embedded its telematic software in Ford Motor Co.’s commercial trucks and vans, allowing its fleet customers to manage vehicles remotely through a website.
$93M Round
The company raised eyebrows toward the end of last year when it raised $93 million in a Series A funding round led by Menlo Park-based investment firm Kleiner Perkins Caufield & Byers. The investment is believed to be the largest any OC company received in a funding round last year.
Kleiner Perkins, one of the largest venture capital firms in the U.S., has made early-stage investments in Google Inc., WebMD and Amazon.com.
Telogis’ inaugural round from institutional investors spurred a hiring push in sales and marketing.
It has added more than 140 employees in the past six months and now has about 500 companywide.
It has development centers in Toronto, New Zealand and Austin, Texas; sales offices throughout Europe and Latin America; and headquarter operations in Aliso Viejo.
The rest of the proceeds were earmarked for product development and building strategic alliances with automakers, Chief Financial Officer Kyle Messman told the Business Journal at the time.
