xoi Raises $230M & Acquires specifx - Field Service Tech Expansion

The Untapped Potential of Field Service Technology

While often overlooked, the field of B2B technology presents significant opportunities when targeting field service engineers – those working directly at job sites. This underestimation creates a valuable opening for companies focused on serving this specific demographic.

XOi Secures $230 Million in Funding

XOi, a software developer specializing in tools for maintenance professionals – enabling them to document repairs with images and access crucial machine information – recently announced a $230 million funding round led by KKR. This investment will fuel the company’s expansion initiatives.

A substantial portion of this funding will be allocated to the acquisition of Specifx. This strategic move will enrich XOi’s datasets with information pertaining to an additional 85,000 equipment model families and associated data points.

Integrating Data for Enhanced Service

XOi intends to integrate the acquired data into its platform, providing users with more precise, device-specific guidance. Furthermore, the company plans to leverage this expanded dataset to develop predictive maintenance capabilities, forecasting necessary upgrades and future work orders.

The financial details of the Specifx acquisition and XOi’s post-funding valuation remain undisclosed. However, it is understood that KKR will become the majority owner of XOi, having previously invested less than $20 million. The purchase price for Specifx is reported to be less than half of KKR’s $230 million investment. This marks XOi’s inaugural acquisition.

From 3D Glasses to Intelligent Software

XOi’s journey began in 2010, initially under the names Pairasight and XoEye. The company originally focused on developing hardware – connected 3D glasses – aimed at both DIY enthusiasts and field service technicians.

The Shift in Focus

The initial concept involved using the glasses to facilitate remote communication between technicians and support staff, providing real-time assistance during equipment repairs, encompassing electrical systems, plumbing, HVAC units, and appliances.

However, the hardware venture faced challenges. High unit costs proved prohibitive for budget-conscious customers, and achieving sufficient durability for demanding job site conditions proved difficult.

“The glasses needed to be as appealing as my investor’s eyewear,” remarked CEO and co-founder Aaron Salow, referencing KKR partner Jake Heller, “perhaps then it would have succeeded.”

Recognizing a shift in the market, XOi pivoted to developing applications that could capture the same data as the glasses, but utilizing the smartphones and tablets increasingly adopted by its target users.

This transition led to the rebranding from XOeye to XOi, with “i” now representing “intelligence,” and spurred significant business growth.

The Growing Field Service Market

XOi and Specifx are part of a burgeoning trend of companies creating solutions for “field service” or “frontline” workers – individuals who perform their duties outside of traditional office settings, directly interacting with customers or working in physical environments.

However, these companies often specialize in specific areas, rather than offering comprehensive solutions. This specialization is a key differentiator.

“Many solutions focus on business operations like scheduling and dispatch,” Salow explained, “but often neglect the actual work performed on-site. This represents a significant underserved area.”

Selling data, business intelligence, and intangible assets to a workforce rooted in physical labor can be challenging. Nevertheless, the increasing complexity of modern machinery is driving demand for solutions like those offered by XOi, assisting engineers in their tasks.

“This company demonstrates a genuine commitment to understanding the realities of the field, placing its ‘laboratory’ directly within the worksites – often in difficult and inaccessible locations,” Heller stated. “The software’s value lies in empowering those who endure discomfort to ensure our collective comfort.”

The future of field service relies on innovative technology that bridges the gap between the physical and digital worlds.