Plume Raises $300M, Surpasses 1.2 Billion Devices
Plume Secures $300 Million Funding Amidst Broadband Demand Surge
Plume, a communications company collaborating with carriers to deliver enhanced smart mesh Wi-Fi and subsequent smart home solutions, has experienced substantial growth. This expansion is directly linked to the increased reliance on robust broadband connectivity within the home environment.
New Funding and Future Plans
The Palo Alto-based company has recently finalized a significant funding round, securing $300 million. This investment was spearheaded by SoftBank Vision Fund 2, resulting in a company valuation of $2.6 billion. According to Plume’s CEO and founder, Fahri Diner, these funds will be allocated to further development of their software platform, expansion of carrier partnerships, and overall business growth.
Initially, Wi-Fi management and pod optimization were central to Plume’s offerings. However, the focus has broadened. While still important, access control and device security are now experiencing rapid adoption. Furthermore, the demand for motion sensors is increasing, driven by privacy concerns surrounding indoor cameras.
Expanding Service Portfolio
For the past two years, Plume has been actively testing applications in areas such as IoT, health monitoring, energy management, and home security. These trials have proven successful, and the company intends to prioritize these services moving forward.
Investor Confidence and Rapid Growth
This funding round included participation from a diverse group of investors. Previous backers include Charter Communications, Comcast Cable, Foxconn, Insight Partners, and Qualcomm, among others. Insight Partners previously invested $270 million at a $1.35 billion valuation just eight months prior, highlighting the speed of Plume’s growth.
The COVID-19 pandemic significantly impacted broadband usage patterns, becoming a major catalyst for Plume’s business expansion. Increased time spent at home for work, education, and leisure placed unprecedented strain on home networks.
Real-World Impact and User Base Expansion
Plume’s solutions proved crucial for many, including the author, who found it to be the only effective solution for reliable broadband connectivity in a challenging environment. The company reported a substantial increase in new households, adding 13 million in the last two quarters, bringing the total to 35 million – surpassing even its largest customer, Comcast.
The platform now supports 1.2 billion devices, an increase of 350 million. Plume has also expanded its carrier partnerships to 240 globally, encompassing cable companies, telecommunications providers, and wireless carriers.
Strategic Partnerships and New Markets
Plume is now collaborating with carriers to extend services beyond their core broadband offerings. For example, in the U.K., Plume and Virgin Media are jointly marketing HomePass, a package including the Plume pod and software, to all 25 million households, regardless of their broadband provider.
Future Service Rollouts
The company is preparing to launch updates to its app later this year, introducing a range of managed services focused on the connected home. This includes proactive alerts, such as notifications when a connected Nespresso machine requires cleaning.
Beyond the Home: Industrial Applications
Looking ahead, Plume anticipates expanding its reach beyond residential environments. A key area of interest is industrial settings, where reliable connectivity and monitoring of remote devices are critical but often costly.
Diner suggests a potential market segmentation into residential, business, and industrial IoT. The company has a strong foothold in the residential sector and is now targeting small businesses, with industrial applications also within scope.
However, enterprise campuses with existing network infrastructure are not currently a focus.
SoftBank’s Perspective
Nagraj Kashyap, managing partner at SoftBank Investment Advisers, stated that the pandemic has accelerated the adoption of digital services and increased reliance on smart devices. He believes Plume’s cloud data platform and consumer-centric approach provide reliable connectivity and expressed enthusiasm for partnering with the company to reshape services for smart spaces globally.
