Cognite raises $150M to digitize industrial operations

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Cognite, an industrial software-as-a-service (SaaS) company, today announced that it raised $150 million in an equity round led by TCV at a $1.6 billion post-money valuation. This investment, which marks one of the largest funding rounds for a SaaS company in Europe, Cognite says, will be used to expand the company’s platform and support hiring.

According to a 2020 PricewaterhouseCoopers survey, companies in manufacturing expect efficiency gains over the next five years attributable to digital transformations. McKinsey’s research with the World Economic Forum puts the value creation potential of manufacturers implementing “Industry 4.0” — the automation of traditional industrial practices — in their operations at $3.7 trillion in 2025.

Cognite, which was founded in 2016, supports the data-driven transformation of asset-intensive industries. Its core product is a DataOps and contextualization platform designed to put raw data into context, enabling application and solution creation “at scale.”

Cognite’s DataOps platform combines machine learning, rules engines, and subject-matter expertise to convert data into insights. It finds relationships in real-time domain data, forming the foundation of modern augmented data management and representing industrial data in a connected, labeled property graph. Cognite customers can configure contextualization pipelines for continuous AI-driven entity matching and diagram parsing, as well as unstructured document rendering that helps to identify tags, similar objects, and extract text and patterns.

Beyond this, Cognite lets companies bring existing AI algorithms onto the platform and provides a dashboard for production optimization. The company also offers an in-field AI-assistant for maximum field worker productivity and explore remote operations asset integrity management.

Digital transformation

Manufacturing is undergoing a resurgence as business owners look to modernize their factories and speed up operations. According to ABI Research, more than 4 million commercial robots will be installed in over 50,000 warehouses around the world by 2025, up from under 4,000 warehouses as of 2018. Oxford Economics anticipates 12.5 million manufacturing jobs will be automated in China, while McKinsey projects machines will take upwards of 30% of these jobs in the U.S.

Cognite’s customer base includes BP, Saudi Aramco, Alfa Laval, Statnett, and Mitsubishi. Recently, the Lysaker, Norway-based company, which claims it’s among the fastest-growing industrial software companies in the world with over 500 employees,  inked a collaboration with Microsoft and Accel.

“Cognite is on a strong trajectory to help transform industry, and since our founding four years ago, we have managed to attract top global talent, and partner with top industrial companies to accelerate modern industrial data management worldwide,“ CEO and cofounder John Markus Lervik said in a press release. “The partnership with TCV allows us to amplify our software solutions to empower asset-intensive businesses to improve their sustainability and profitability of operations.”

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