Motive raises $1.3 billion from General Catalyst

Motive, a San Francisco-based company, secured over $1.3 billion in growth financing from General Catalyst to fuel AI investment across its platform and expand its sales, support, and service teams. The company reported a $600 million annual recurring revenue (ARR) and the growth in ARR accelerated to 30% year over year. Customers spending more than $100,000 saw a nearly 60% increase in ARR, with net revenue retention above 120%.

General Catalyst managing director Pranav Singhvi joined Motive's board. The raise will pay for heads in the field and new models, with the company naming Thomas Hansen as its first president of go-to-market. Motive serves nearly 100,000 customers across various industries, including trucking, construction, energy, field service, manufacturing, agriculture, and related industries.

The financing allowed Motive to withdraw its previously filed S-1, keeping a public listing as a future path. With this financing, Motive remains well-positioned for the public markets and can continue to operate privately with resources to invest aggressively. The company has over a million commercial vehicles on its platform, representing a 3% penetration rate of the North American market, which is estimated at 30 million.

Motive's chief financial officer attributed the check to product work and a larger sales force. The investment case for Motive lies in its AI-powered cameras that flag phone use, fatigue, and following distance. The company's newly launched Maintenance and Operations Intelligence will take interventions with agents, preventing collisions, avoiding downtime, and eliminating manual work.

Singhvi believes the physical AI market represents one of the most compelling long-term opportunities.