XOi Secures $230M Funding and Acquires Specifx to Revolutionize Field Service Technology

Field service engineers are often overlooked in discussions about lucrative opportunities within B2B technology. However, this gap highlights significant potential for businesses that target “the job site” effectively. One such company making waves in this sector is XOi, which specializes in developing software that enables maintenance professionals to capture images and quickly access crucial information about the machinery they are repairing.

XOi Secures $230 Million Funding for Expansion

On Tuesday, XOi announced it has successfully raised $230 million from KKR, a move aimed at expanding its business operations. This substantial funding will facilitate immediate growth initiatives within the company.

Acquisition of Specifx

A significant portion of the new capital will be allocated to the acquisition of Specifx, a company that will enhance XOi’s datasets with information on approximately 85,000 additional model families and related data. The integration of this data into XOi’s existing platform is expected to:

• Provide more device-specific instructions for users
• Enhance datasets for predictive maintenance and upgrades

While XOi has not disclosed the purchase price for Specifx, it is understood that KKR will become the majority owner following this funding round. Prior to this, XOi had raised less than $20 million, and it appears that the acquisition cost is significantly lower than the new funding amount.

A Journey from Hardware to Software

Founded in 2010 and originally named Pairasight, XOi has evolved significantly over the years. Initially, the company focused on hardware, specifically connected 3D glasses designed for DIY enthusiasts and field service technicians.

However, challenges in the hardware sector led to a strategic pivot. High unit prices and cumbersome designs hampered the viability of their products. As CEO and co-founder Aaron Salow noted, “If they looked as cool as his glasses, maybe it would have worked.”

Transition to Mobile Applications

Recognizing the shift in technology adoption among their target users, XOi transitioned to creating applications that captured the same data as their glasses but were compatible with smartphones and tablets. This change not only improved accessibility but also contributed to the company’s growth.

Targeting the Field Service Workforce

Companies like XOi and Specifx are part of a burgeoning market focused on solutions for field service or frontline workers. These professionals work in diverse environments and are often customer-facing, making their needs unique compared to traditional desk-bound employees.

Salow emphasized the gap in the market: “A lot of apps are built for business operations, scheduling, and dispatch. However, once you arrive on-site, these needs are often overlooked.”

The Challenge of Selling Data in a Physical World

While selling data and business intelligence to a physically-oriented market can be challenging, the increasing sophistication of machinery is attracting more interest in solutions provided by companies like XOi. KKR partner Jake Heller stated, “This company has real religion, taking their ‘laboratory’ and putting it in the field, making work easier for those who operate in uncomfortable environments.”

As the field service industry continues to evolve, XOi’s innovative approach positions it well for future success and growth in an underserved market.

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