Matrixx Software gets $50m injection to support 60% annual growth

Glo Gordon CEO Matrixx.jpg

A Californian investment firm has put US$50 million into Matrixx Software to aid its expansion into the 5G business.

The investment comes from Francisco Partners, a San Francisco-based technology investor, whose current interests include a stake in Ericsson’s Iconectiv, formerly Telcordia, and financial technology company Verifone. Past investments include Eventbrite and broadcast technology group Grass Valley.

Glo Gordon (pictured), Matrixx CEO, said of the Francisco Partners investment: “We believe this partnership will enable us to solidify our product leadership while further extending and enhancing the Matrixx offering across the rapidly expanding 5G ecosystem.”

Matrixx’s existing users include Dish in the US, Telefónica O2 Deutschland and Telstra in Australia, and it has been growing by more than 60% year-on-year, fuelled by the first waves of 5G network investments and rollouts.

Gordon said Matrixx’s vision was “to be the industry’s go-to monetisation solution”.

Matrixx said that telecoms operators are “increasingly focused on monetisation and next-generation, product-based solutions capable of delivering transformative business agility.

Gordon has been on Matrixx’s board since October 2018 and became CEO at the start of 2020, appointed by Dave Labuda, who is the company’s founder, chairman and chief scientist. Gordon is also a board member of network-as-a-service provider Megaport.

She said: “With both traditional and new service providers investing heavily in 5G, Matrixx is the industry’s only commerce platform capable of unlocking the innovative enterprise solutions, new commercial relationships and multi-party business models that will define the future of connectivity.”

Matrixx is a privately held company, so there are only estimates of its financial status. Most sources suggest its investment so far has been around $80 million, meaning that this latest contribution represents a considerable increase.

Matrixx said it will use Francisco Partners’ funding from “to invest heavily in R&D to continue to evolve and expand product capabilities and solidify [its] leadership position”.

Peter Gingold, who led the deal for Francisco Partners, said: “Matrixx’s product leadership, robust customer base and impressive track record of growth creates a unique and powerful platform that we believe is well-positioned to continue gaining market share.”