Gaiia, a telecom software startup spun out of Montréal ISP Oxio, announced a $40 million USD Series B funding round led by U.S. private equity firm JMI Equity. The investment will accelerate product development and support Gaiia’s mission to become the leading platform for next-generation internet service providers in Canada and beyond.
- Gaiia raised $40M USD Series B led by JMI Equity
- Targets challenger ISPs with AI-native telecom software
- Claims triple revenue growth for three consecutive years
What happened
Gaiia, a telecommunications software startup based in Québec City, secured $40 million USD in a Series B financing round in April 2026. The round was led by JMI Equity, a US private equity firm that has previously invested in Canadian tech companies such as Clio and PointClickCare. Montréal’s Inovia Capital also participated in the funding. This latest round brings Gaiia’s total funding raised to nearly $90 million CAD.
Founded as a spinout from Montréal-based internet service provider Oxio, which sold its telecom operations to Cogeco Connexion in 2023, Gaiia now focuses on providing software solutions for challenger ISPs. Oxio remains Gaiia’s first customer but holds no equity stake in the new company. The investment will be used primarily for product enhancement, research and development, and to grow its team of around 90 employees.
Why it matters
Gaiia’s growth highlights the increasing demand for specialized software platforms that enable challenger ISPs to compete with larger providers. By offering integrated tools like workflow automation, customer relationship management, and field service applications, Gaiia aims to simplify operations and enhance the end-user experience. Their AI-native approach differentiates them from traditional telecom software, promising smoother and more efficient service delivery.
The company’s revenue has tripled each year over the past three years, driven largely by customer referrals. Gaiia’s ability to provide seamless onboarding—waiving migration fees and reducing setup times—addresses common barriers challenger ISPs face, positioning the company to capitalize on a growing market of smaller internet providers seeking agile, cost-effective solutions.
What to watch next
With fresh capital and new leadership involvement from JMI Equity, which also secured a board seat, Gaiia is expected to accelerate its product innovation and extend its market reach within Canada and internationally. Observers should watch for new product features and partnerships that reinforce its position as a go-to software platform for challenger ISPs.
Additionally, because the telecom software market is competitive and rapidly evolving, it will be important to monitor Gaiia’s ability to maintain its growth trajectory and customer satisfaction by continuously improving user experience and expanding service offerings with AI-driven enhancements.