Existing investor Renovo Capital and Otodata management will retain minority interests in the company. Financial terms of the transaction have not been disclosed.
Founded in 2010, and headquartered in Montreal, Otodata provides remote monitoring hardware, software and applications across a range of industries, including refined fuels, heating oil and biofuels.
Its technology enables distributors to remotely monitor customer tank levels, providing data that can be used to improve asset utilisation and workforce efficiency while reducing the risk of customers running out of product.
Investment in digital infrastructure
The investment comes as telemetry takes an increasingly central role in fuel distribution, with remotely generated tank data supporting decisions around delivery scheduling, route planning and customer service.
GI Partners, which has invested in data infrastructure for around two decades, said it sees continued growth opportunities in Internet of Things technology as artificial intelligence, automation and digitisation develop.
Jeremy Eaton, CEO of Otodata, said the new investment would help the company strengthen its existing products and expand into new markets: “We’re excited to welcome GI Partners as our new majority partner,” he said.
“GI Partners’ deep experience investing in Internet of Things businesses, paired with its operational and digital infrastructure expertise, will help us strengthen our current offerings, better serve current and new customers, and accelerate our expansion into new verticals.”
Jerry Stapp, managing director at GI Partners, described Otodata as operating in a “mission-critical category”, adding that the investor saw strong tailwinds from AI, automation and digitisation.
For fuel distributors, the deal is another indication of the growing commercial value being placed on the data and digital infrastructure surrounding physical fuel delivery.
As distributors increasingly look to improve delivery efficiency, reduce unnecessary journeys and gain better visibility of customer demand, telemetry is moving beyond simply reporting what is in a tank to becoming part of the wider operating model of the business.
Image from Otodata