Insight Partners Backs SpryPoint in Utility Software Growth Play

Insight Partners has made a strategic growth investment in SpryPoint, a Charlottetown, Prince Edward Island-based provider of cloud-native customer service and operations software for utilities, the companies announced Monday. The deal brings one of the world's largest software investors—with over $90 billion in regulatory assets under management—into a market experiencing powerful modernization tailwinds as utilities replace decades-old legacy systems.

Financial terms were not disclosed. The investment represents Insight's latest vertical software bet and comes nearly three years after Norwest initially invested in SpryPoint in 2023, when the company was serving a smaller base of utility customers. Norwest continues as a significant investor alongside Insight Partners in the new round.

The deal underscores growing private equity interest in government and utility technology, a sector characterized by long sales cycles but sticky customer relationships and predictable recurring revenue. For SpryPoint, which serves more than 100 utilities across the Americas spanning water, electric, and gas providers, the capital will fund product development, accelerate customer implementations, and scale the organization to meet surging demand for alternatives to legacy billing and field operations systems.

The transaction positions SpryPoint to capitalize on a utility software market experiencing double-digit growth as infrastructure providers modernize customer-facing systems. Three Insight Partners executives—Anika Agarwal, Amir Ravandoust, and Sam Rhee—will join SpryPoint's board of directors as part of the investment.

The investment comes as SpryPoint has demonstrated significant momentum. The company was recognized by Deloitte as one of the 50 fastest-growing companies in Canada and among the top 500 in North America, reflecting accelerating adoption of its platform among utilities seeking to replace aging customer information systems.

Insight Partners' thesis centers on SpryPoint's differentiated position in a massive, underserved market facing structural tailwinds. Unlike horizontal SaaS platforms that serve multiple industries, SpryPoint has built a purpose-built solution addressing the unique complexities of utility operations—from multi-commodity billing to field service management to regulatory compliance.

"Utilities represent a massive, underserved market with powerful modernization tailwinds," said Anika Agarwal, Managing Director at Insight Partners. The firm sees SpryPoint's track record of successful implementations and long-term client partnerships as validation of product-market fit in a sector where switching costs are high and vendor selection is deliberate.

For SpryPoint, the investment provides both capital and operational expertise. Insight Partners brings deep domain knowledge in vertical software and government technology, having previously invested in companies including CivicPlus, Vector Solutions, and Payit. Beyond capital, Insight will provide operational support in product innovation, payments strategy, and go-to-market efficiency—critical capabilities as SpryPoint scales from 100 customers to potentially hundreds more.

"This investment allows us to expand our team to ensure every utility continues to receive a best-in-class experience throughout deployment and beyond, maintaining the service quality that has defined our success," said Kyle Strang, CEO of SpryPoint.

The deal also reflects Norwest's conviction in the company's trajectory. "SpryPoint has grown dramatically over the past three years, a testament to the strength of the product platform as well as the management team's dedication to serving utilities across North America," said Ran Ding, General Partner at Norwest.

Founded in 2011, SpryPoint has spent more than a decade building integrated, cloud-native software solutions designed specifically for utility operations. The company's platform addresses three core functional areas: billing and customer engagement, field operations management, and business intelligence for data-driven decision-making.

The platform's cloud-native architecture represents a fundamental departure from legacy on-premises systems that have dominated the utility sector for decades. Traditional customer information systems (CIS) from vendors like Oracle, SAP, and legacy providers were built in an era before cloud computing, mobile workforces, and real-time customer expectations. These systems often require significant IT infrastructure, lengthy implementation cycles, and costly customization.

SpryPoint's approach emphasizes rapid deployment, continuous updates, and integration with modern digital channels. The platform serves water, electric, and gas utilities—each with distinct operational requirements but common needs around customer service, billing accuracy, and field workforce coordination.

The company's growth trajectory has accelerated in recent years as utilities face mounting pressure to modernize. Aging infrastructure, evolving customer expectations shaped by consumer technology experiences, and regulatory requirements around data security and service reliability have created urgency around digital transformation.

"We've built the industry's only truly cloud-native customer service and operations platform purpose-built for utilities," Strang said. The claim reflects SpryPoint's positioning against both legacy enterprise software vendors and newer horizontal SaaS platforms that lack utility-specific functionality.

The utility customer information system market is experiencing robust growth driven by digital transformation initiatives across the sector. The global utility CIS market was valued at $12.58 billion in 2025 and is projected to grow at a compound annual growth rate of 10.03%, according to industry research. Other estimates place the utility CIS software market at $1.37 billion in 2024, projected to reach $2.86 billion by 2031, reflecting strong demand for modern platforms.

Several factors are driving market expansion. First, utilities are replacing legacy systems that have reached end-of-life, with many running on decades-old technology that lacks modern security features and integration capabilities. Second, the adoption of smart grids and advanced metering infrastructure generates massive volumes of data that legacy systems struggle to process and analyze. Third, customer expectations have evolved—utility customers now expect mobile apps, self-service portals, and real-time information comparable to their experiences with consumer technology companies.

The market also faces headwinds. Concerns over data privacy and cybersecurity create implementation complexity, particularly for utilities serving critical infrastructure. Long sales cycles and risk-averse procurement processes can slow adoption. And the fragmented nature of the utility sector—with thousands of municipal, cooperative, and investor-owned utilities of varying sizes—creates challenges for software vendors seeking scale.

Private equity interest in utility software has grown as investors recognize the sector's attractive characteristics: recurring revenue, high switching costs, and mission-critical status that supports pricing power. Recent comparable transactions in adjacent government and vertical software markets include:

These deals share common themes with the SpryPoint investment: vertical software serving government or quasi-governmental entities, recurring revenue models, and opportunities to consolidate fragmented markets through product innovation and M&A.

Insight Partners has established itself as one of the world's most active software investors, with over $90 billion in regulatory assets under management as of June 30, 2025. The firm has invested in more than 875 companies worldwide and has seen over 55 portfolio companies achieve an IPO.

Headquartered in New York City with offices in London, Tel Aviv, and the Bay Area, Insight focuses on high-growth technology, software, and internet companies. The firm's strategy emphasizes providing not just capital but operational expertise—what it calls "tailored, hands-on software expertise along their growth journey, from their first investment to IPO."

The SpryPoint investment aligns with Insight's established vertical software strategy. The firm has built a portfolio of companies serving specific industries with purpose-built solutions, including government technology (CivicPlus), public sector training (Vector Solutions), and government payments (Payit). This sector focus allows Insight to develop deep domain expertise and create value through pattern recognition across similar business models.

Agarwal, who will join SpryPoint's board, emphasized the firm's conviction in the utility modernization opportunity. "SpryPoint has built a differentiated platform that utilities value, as demonstrated by their track record of successful implementations and long-term client partnerships."

Ravandoust added: "SpryPoint has demonstrated its ability to innovate and thoughtfully expand its platform in ways that resonate with utilities. Their consistent delivery of new products, combined with a strong execution mindset, positions the company well for its next phase of growth."

The SpryPoint investment signals continued private equity interest in vertical software serving government and regulated industries. As utilities face pressure to modernize aging infrastructure and meet evolving customer expectations, software platforms that can demonstrate ROI through operational efficiency and improved customer satisfaction are well-positioned for growth.

Several trends bear watching. First, consolidation in the utility software market may accelerate as larger platforms acquire point solutions to build comprehensive suites. Second, the integration of artificial intelligence and machine learning into utility operations—from predictive maintenance to customer service automation—could create new product opportunities for platforms like SpryPoint. Third, regulatory developments around data privacy and cybersecurity will shape product roadmaps and implementation timelines.

For SpryPoint, the path forward involves balancing growth with service quality. The company's success has been built on successful implementations and long-term customer relationships in a sector where failed software deployments can have significant operational consequences. Scaling to serve hundreds of additional utilities while maintaining implementation quality and customer satisfaction will test the organization's operational capabilities.

The broader utility sector faces a critical juncture. Decades of underinvestment in technology infrastructure have left many utilities running systems that lack modern capabilities. The transition to cloud-native platforms represents not just a technology upgrade but a fundamental shift in how utilities operate and engage with customers.

SpryPoint's ability to execute on this opportunity—backed by two experienced growth equity investors—will provide a test case for the vertical SaaS thesis in utility markets. Success could attract additional capital to the sector and accelerate the pace of digital transformation across North American utilities. Challenges in scaling or implementation could reinforce the sector's reputation for slow technology adoption and risk aversion.

The investment also highlights the growing sophistication of software investors in identifying underserved vertical markets. While horizontal SaaS platforms serving broad markets have attracted significant capital and attention, vertical software companies serving specific industries with purpose-built solutions are increasingly viewed as attractive investment opportunities—particularly when those industries face structural tailwinds toward modernization.

For the hundreds of utilities still operating on legacy systems, the SpryPoint-Insight Partners deal represents both a signal and a challenge. The signal: capital is flowing to modern alternatives, validating the business case for cloud-native platforms. The challenge: as competitors modernize their operations and customer engagement capabilities, utilities that delay digital transformation risk falling behind in operational efficiency and customer satisfaction.