Long considered as a potential future unicorn, French IoT network provider Sigfox has been placed under a receivership/rehabilitation proceeding with continuation of activity by the Commercial Court of Toulouse, France. The main reason is the “slower-than-expected adoption cycle for its technology.”
“Please note Sigfox is not in a bankrupt situation,” Sigfox’s corporate communication manager Antoine Mège told EE Times Europe. “We have requested to be placed under court protection, by applying for the opening of a receivership/rehabilitation procedure (Redressement judiciaire, in French). It is not a liquidation.”
Mège added, “The receivership/rehabilitation procedure is a solution under French law intended to allow the continuation of the company’s activity and then its revival, the only way to ensure its durability. The final objective of this procedure is to find a buyer able to invest in the growth and development of Sigfox.”
In a non-public statement that the company shared at the request of EE Times Europe, it is specified that the Commercial Court of Toulouse opened on Jan. 26, 2022 “at the request of” Sigfox’s CEO, Jérémy Prince, a receiving/rehabilitation proceeding with maintenance of activity for Sigfox and its subsidiary Sigfox France SAS.
The initial six-month observation period will allow the identification, through the implementation of a takeover plan, of new buyers able to support Sigfox’s long-term development and propose to maintain jobs. The company currently employs slightly more than 300 people.
The statement explains that “the decision to place Sigfox under the protection of the Justice through this proceeding was made because of a slower-than-expected adoption cycle for its technology, despite effective shareholder support. In addition, the IoT sector has suffered from the Covid-19 pandemic crisis, slowing down activity over the past two years and putting pressure on the electronic components market, now in shortage. These factors combined have strongly impacted the company’s financial situation, in particular its debt level, which now makes it difficult to speed up the development of Sigfox and its worldwide recognized technology in an increasingly competitive market.”
Founded in 2010, Sigfox is a LPWAN service provider for connecting simple, low-powered, low-cost IoT devices to the Internet. Deployed in 75 countries, Sigfox’s 0G network is claimed to cover more than 1.4 billion people. In 2021, Sigfox reported 19.5 million connected devices and 76 million messages sent every day.
Sigfox said it has designed its technology and network to meet the requirements of mass IoT applications: long device battery life-cycle, low device cost, low connectivity fee, high network capacity, and long range.
Since its creation, Sigfox has raised nearly €300 million from high-profile investors such as Intel, Samsung, NTT, SK Telecom, Salesforce, Total, and Air Liquide.
Sigfox was listed in the 2020 and 2021 editions of La French Tech 120, a growth-stage program by La French Tech created to provide government-backed support for the 120 fastest growing companies in France. The hopes were so high that Sigfox was listed in Next40, a selection of France’s most promising technology startups.
Headquartered in Labège, near Toulouse, France, Sigfox has offices in Boston, Dallas, Dubai, Madrid, Paris, Sao Paulo, Singapore, and Tokyo.
