Samsara, a fleet management company had raised $400 million from its most updated round of fundraising which has bumped up its valuation to $5.4 billion.
Samsara CEO Sanjit Biswas had unveiled this news at the company’s town hall event and he had also talked about the latest layoffs of 300 employees which constitutes 18% of the workforce of the company.
“The deep economic impacts of Covid-19 have now become clear. We have a strong business with continued revenue growth, but must address the realities of the economic situation,” Lindsay McKinley, Samsara spokeswoman said.
From the previous $6.3 billion valuations, the new valuation of the company is at a decrease of 14%.
Samsara raised $930 million, in total. As well as returning investors like Andreessen Horowitz, General Catalyst, Dragoneer Investment Group LLC and Tiger Global Management, a lot of new investors like AllianceBernstein, Holding LP, Franklin Templeton, General Atlantic, Sands Capital Management, and Warburg Pincus LLC had also been a part of the latest round of financing.
Samsara had originally planned to more than double recurring revenue this year, but Biswas put out a memo for the company employees acknowledging that it was “hard to see how we can maintain that same recurring revenue growth forecast with everything ahead of us.” As the fleet customers of the company continue to be operational, truck and trailer manufacturers have announced a record low of new sales.
“Covid’s economic impact has been swift and severe. Indicators like labour rates, consumer spending and state budget deficits already look worse than the 2008 financial crisis,” Biswas wrote.
Originally, the fundraising had been meant for the second half of 2020, but due to the COVID-19 pandemic, the company had to make this move earlier so that they were able to be sustainable.