Thinxtra to Take On Telstra with its IoT Network as They Kick Off a $20m Capital Raise

Start-up Thinxtra has raised $20 million aimed at extending the reach of the company’s network, which will rival with business giant Telstra in enabling everyday products such as water meters, thermostats and gas cylinders to be connected to the internet.

KEY TAKEAWAYS:

• The company is intending to play a central role in the emergence of the internet of things (IoT) in Australia, rolling out a network that will let IoT devices communicate with low bandwidth.
• The company, was founded by 28-year-old Loic Barancourt during 2015, in which he is responsible for deploying French company Sigfox’s low-powered wide area network (LPWAN) technology throughout Australia, New Zealand, Hong Kong and soon more countries throughout Asia.
• Thinxtra CEO, Loic Barancourt said the firm is embracing technology that can connect everyday products to the internet.

Thinxtra being only two years old, has already raised more than $11.5 million in capital, with the lead investor being New Zealand-based listed technology company, Rakon. The company has managed to reach more than 70 per cent coverage of the Australian population and 83 per cent of New Zealand. By the end of 2017 Thinxtra intends to have rolled out the LPWAN network to cover 95 per cent of both Australia and New Zealand. Mr Barancourt said it already has 100 Australian and New Zealand partners signed up to develop IoT solutions

“When you connect an asset to the 3G network that doesn’t have access to power, like a water meter, if you want to enable 3G it has to have a big battery that would have to be changed every two years. On the Sigfox network you will get 15 years of battery life,” Barancourt said.

“Then there is the cost of the connectivity itself. With Sigfox it costs $2-5 a year per device to connect an asset, but with a major telecommunications company like Telstra you’d be charged that per month.”

While Thinxtra is focusing on rolling out the LPWAN, Telstra has also been investing in its own infrastructure and in September conducted its first live 5G trial.

Telstra believes its 5G network will be able to support the influx of IoT devices, although it will not be deployed until 2020.

Thinxtra has only just begun their capital raise ventures, but can boast already of the interest from industrial players, some venture capitalists, family offices and existing investors. During September 2016, the start-up won a contract with global leader, Silicon Controls, to connect 1 million of its devices to the Sigfox. Thinxtra has launched a $5 million program to bring the IoT to interested local councils, including the Coffs Harbour City Council. It has also signed up five universities in Australia and New Zealand to help it develop IoT devices and teach students about LPWAN technology by providing them with access to the Sigfox developer kit and network support.

Mr Barancourt finished with “For us, it’s very important to physically educate people and make sure everyone understands what IoT can do.”

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