A company which builds software to help business clients use the Internet of Things to streamline their operations has raised £2.1 million to help with its expansion plans.
Konektio, which is based in Chesterfield, in north Derbyshire, has gained support from both the Midlands Engine Investment Fund (MEIF) and Northern Powerhouse Investment Fund (NPIF), managed by Mercia and Foresight Group, along with existing investor Tern plc.
The money will allow Konektio to develop its product, grow its sales and marketing team, boost overseas sales and add staff.
Konektio’s main product is called AssetMinder and helps companies connect to and monitor assets, ranging from small industrial parts to big bits of machinery in remote locations or across an entire factory floor.
The technology gathers data from each item, allowing users to make informed decisions on maintenance and servicing, reducing downtime and energy usage and improving efficiency.
Chief executive Peter Stephens said AssetMinder was launched just over two years ago and is now used in sectors ranging from food processing and manufacturing to logistics, energy and water supply.
Clients include maintenance and repair operation Dexis, GCE Healthcare, global engineering company Howden and gas turbine manufacturer Centrax.
The company, which was previously known as InVMA, was founded by Patrick Nash, Jan Hemper and Jon Hill, who recognised the need for the software due to their work as industrial IoT consultants.
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It now employs around 20 staff at its headquarters in Chesterfield and has recently opened an office in North Carolina.
Mr Stephens said: “Companies have started to cut through the confusion around digital manufacturing and the next industrial revolution and now share a real appetite to see how the intelligent use of data can deliver returns on investment.
“This is really good news for our business, and we are looking to capitalise on this trend by investing significantly in product development, R&D and expanding our global customer base. The investment secured will help us achieve these goals.”
Kiran Mehta, investment manager at Mercia, said: “Konektio is a deep tech company with the potential to transform industries ranging from manufacturing to infrastructure and power generation.
“The team are renowned for their knowledge and strong track record. This funding round will enable them to take their product to the next level and establish the company on the global stage.”
Adam Huckerby, senior investment manager at Foresight, said: “We have been impressed by management’s achievements to date.
“There is a wealth of growth opportunity in the market and this is one of several IOT-related investments Foresight has made. We look forward to working with the team over the coming years.”
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Al Sisto, chief executive of Tern Plc which invests in IoT start-ups, said: “We are very pleased that Konektio has secured a significant institutional investment in order to fund the next phase of its growth.
“We welcome the Mercia and Foresight funds as our partners, alongside the management and founders of Konektio, to help the business achieve its full potential.”
Grant Peggie, director at the British Business Bank, said: “It’s great to see fund managers from MEIF and NPIF collaborate to invest in a growing innovative business in Chesterfield.
“This latest deal will support Konektio’s expansion in international markets and boost the local economy with the creation of new high skilled jobs.
“We encourage other businesses in the Derbyshire area looking to grow to consider investment available from the bank’s regional funds.”
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