IQGeo Group plc

Geospatial productivity & collaboration software

Visit the IQGeo website
Status Current
Period May 15 – Current
Headquarters Cambridge, UK

Since the disposal of Ubisense:

Daily users of software

12,000 to 70,000+

Gross Margin improved from

34% to 63%

4x ARR growth to

£6.6m in two years

Sources: Sources: Company presentation H1 21, Company financials H1 19 to H1 21, Company financials H1 19 to H1 21

Company

IQGeo is a disruptive innovator providing software for the design and management of telecoms and utility networks globally. Their customers range from small European fibre providers to Japan’s largest utility, with the majority of customers by number and value in North American. IQGeo provides customers with a modern, and mobile, software platform that digitises and automates processes leading to material efficiency gains across sales, planning & design, construction and maintenance & customer service.

Investment rationale

  • Software products addressing global markets
  • Strong North American penetration and market leader in Japan
  • Strong market to replace / enhance existing geospatial solutions
  • End market growth driven by investment in infrastructure assets, particularly 5G and fibre networks, and regulatory requirements
  • High margin software revenues with very strong recurring element
  • High quality, well established infrastructure related customer base
  • Heavily invested software platform developed by a team with deep industry expertise

Kestrel involvement, actions and impact

At the time of our first investment in 2015, the company was a growing provider of geolocation devices with embedded software to the global automotive industry alongside an established geospatial software and services business.

Kestrel was the cornerstone investor in a £4.8m fundraising in 2016 and shortly afterwards Oliver Scott joined as a Non-executive director as part of a wider boardroom reshuffle, including a change of CEO.

The new board initiated a strategic review resulting in a decision to focus solely on the company’s emerging geospatial software business with its proven capabilities and established customer base. This led to the disposal of its geolocation devices business (Ubisense) for £35.0m in 2018. The company returned £13.0m from the disposal proceeds whilst retaining the balance to invest in and grow its geospatial software business and transition from a perpetual licence model to a SaaS commercial model.

Recognising the company’s evolution into its next phase of growth and its changing needs, Oliver Scott decided to step down from the board in 2019 in favour of Max Royde.

In 2020, Kestrel was the cornerstone investor for the Company’s £5.3m equity raise to fund its acquisition of fibre specialist OSPI in North America.