Inovia investment Partner Magaly Charbonneau first met Marc-Andre while he was building Oxio, which became the fastest-growing Internet Service Provider (ISP) in Canada1 and was acquired by Cogeco at the beginning of 20232. When we heard about Marc-Andre’s latest seed announcement3 of his new startup, gaiia, we were eager to learn about this talented entrepreneur’s vision for the future of the telecommunications industry.
Fast forward a few months, we are thrilled to announce that we have led gaiia’s US$13.2M Series A round, alongside GTMfund, General Advance, Manon Brouillette (Inovia Strategic Partner, ex-CEO of Videotron and Verizon Consumer Group), Simon De Baene, and existing investor, Y Combinator. gaiia is on a mission to empower established and emerging ISPs with its Operating Support System (OSS) and Business Support System (BSS) software, enabling its clients to acquire and retain customers while reducing operating expenses through automation.
Along with his co-founders and a talented team, Marc-Andre has rapidly scaled gaiia, already serving nearly 20 ISPs in less than a year of operation.
In addition to this impressive early traction, our excitement is driven by three main trends:
Customer Experience Remains the Kryptonite of ISPs
As internet access underpins, economic, financial and social well-being, the need for ISPs to serve their customers seamlessly is central to their success. Unfortunately, the telecommunications industry offers one of the worst customer experiences among all industries4. The COVID-19 pandemic and the shift to remote and hybrid work have further strained the customer experience provided by ISPs, as customers, businesses, and machines (e.g., Internet of Things) become more reliant on network quality and uptime.
At the same time, existing software providers are antiquated, not adaptive to today’s customer needs, and non-flexible to current digital infrastructures and environments. Additionally, homegrown solutions employed by ISPs often fail to address the core challenges comprehensively. While features such as automated billing, self-service portals, subscription management, real-time network monitoring, and incident response have become table stakes, these are often lacking in legacy OSS and BSS solutions. gaiia has seized on these challenges and built a platform that integrates these functionalities under one roof, offering advanced automation capabilities and other critical product features.
A Large Market Opportunity Poised to Accelerate
gaiia’s market opportunity is substantial in the United States alone, with international markets offering an additional potential for expansion. The company has the opportunity to capture a significant portion of this market, which is expected to continue accelerating due to a combination of favourable trends.
First, the U.S. government is fueling a broadband boom with $75B in capital programs for local ISPs and communities in underserved regions5. Amid one of the largest infrastructure programs ever undertaken, providers are replacing old networks with fibre, reaching communities through footprint expansion. As of June 2023, 46% of the homes in the U.S. are now fibre-serviceable, up from 30% in June 2020. This momentum is set to grow, with 12 million homes projected to get fibre in 2024 alone, marking a potential record year.
Lastly, private equity firms in infrastructure have been transformational in the landscape of ISPs. These groups are investing billions of dollars in expanding broadband fibre-optic networks while focusing on rolling out acquisition strategies for their portfolio companies, and advocating for operational margins optimization. The convergence of these trends drives the need for a comprehensive solution like gaiia.
Building a Mission-Critical Platform Embedded in the Day-to-Day Operations of an ISP
We see gaiia positioned at the core of an ISP’s daily operations. With the knowledge and experience gained from building Oxio, the team has built a platform offering extensive advanced and automated capabilities, including billing, online checkout, customer portal, network monitoring and response, automated workflows, workforce and scheduling, and more. Consequently, when properly implemented, the platform seamlessly integrates into an ISP’s workflow, helping clients deliver the value their customers expect.
With their unique qualifications, we are confident in the gaiia team’s ability to realize their ambitious vision. Their deep understanding of the challenges and pains of running an ISP and their commitment to leveraging this experience will undoubtedly shape the company’s future.
1. Oxio internet is sustainable and affordable without the hassle of large telcos (link).
2. Cogeco Connexion Announces the Acquisition of Oxio (link).
3. gaiia Seed announcement (link).
4. Customer Gauge – The State of B2B Account Experience.
5. Broadband Grant Programs (link).