Zenatix Solutions, an IoT-driven energy data analytics company, has raised a pre-series A round from early-stage investor Blume Ventures.
The funding—the company has not disclosed the amount—will be used for expanding into markets beyond Delhi-NCR and for building up the team. The funding will also be used to improve technology and the product. "The product is about helping customers save on their energy spends. With this round, we are aiming to make it more robust, cleaner, and user friendly," says Dr. Amarjeet Singh, CTO, Zenatix Technologies. Zenatix, founded in 2013, is a cloud-based energy analytics product that collects data from several electrical products and breaks them into actionable insights. It helps in reducing electricity spends by 10 per cent, the company claims. This is done using intelligence that is derived from the correlated energy data with other factors, including temperature, humidity, and occupancy.
Its clients include NIIT, Xerox, Google, Tata Teleservices, Mother Dairy, Glaxo SmithKline, and Starbucks. Rahul Bhalla, Co-founder and CEO, adds that being a SaaS-based engagement model, they follow a fixed monthly or annual fee and the energy savings delivered by the analytics solution far outweigh the fee. At an annual run rate, the current revenue is at $140,000.
Rahul adds that with the product-market-fit validation of the product, the team now is going to focus on expanding the customer base and delivering additional value from the product in an automated fashion. The company is targeting an ARR, which is value of the contracted recurring revenue components of term subscriptions normalised to a one-year period, of $1 million within the next year.
Karthik Reddy, Co-Founder and Managing Partner at Blume Ventures, said the Zenatix team’s passion and determination was among the factors leading to the investment. He believes that energy efficiency and savings is as important as solving the energy conservation.
In 2014, we saw a slew of large corporates like Intel, Cisco, Qualcomm, and Samsung investing their time, talent, and money in the Indian IoT space. Considering the rising talent and cost advantage, India has great potential in the IoT space.
Whether it is wearables in the wellness and health sector or home solutions or transpiration, IoT is making its presence felt across the country. A study by research firm IDC estimates that by 2020 there will be over 28 billion objects with data exchange capabilities.
Startups that have a first-mover advantage in various segments within IoT, are able to show results to customers, and can acquire a large cross-section of customers are sure to do well. This is exactly what Zenatix seems to be targeting.