[Funding alert] OaaS company Quantela raises $40M from digital infra focused fund Digital Alpha
Quantela Inc, a Silicon Valley-headquartered and Hyderabad-based outcomes-as-a-service (OaaS) company working in the space of urban infrastructure digitisation, smart cities and IoT, has closed approximately $40 million in growth capital from Digital Alpha, a digital infrastructure investment firm.
The funding is aimed at helping Quantela grow inorganically through acquisitions, as well as help city governments finance ‘outcomes-driven’ infrastructure digitisation projects globally.
This follows a Series A round of funding of $10 million in November 2018.
"The growth capital from Digital Alpha is a validation of the market opportunities that exist for us”, said Sridhar Gadhi, Founder and Executive Chairman, Quantela Inc. “While Quantela has been growing exponentially since inception, the funding will enable us to expand our global presence faster through a combination of acquisitions and new OaaS projects, creating greater impact for societies."
Sridhar Gadhi, Founder and Executive Chairman, Quantela Inc
“Quantela has clear, market-leading capabilities in smart cities, which have delivered tangible outcomes for its customers globally, addressing critical societal issues such as the digital divide, safety, security, and environmental sustainability,” added Rick Shrotri, Managing Partner at Digital Alpha.
Beyond technology, Quantela claims to enable communities to digitise their infrastructure despite budgetary restrictions by financing the initial investment and engendering a partnership between technology providers and clients.
In a statement, Quantela said it recoups the original investment based on actual outcomes of cost savings from deployment of technologies such as smart lighting or smart waste management, as well as incremental revenues earned from user charges such as parking, advertising revenue, traffic violation tickets, or anonymised aggregated data monetisation. This integrated approach focuses on tangible outcomes and long-term commitment to achieve customers’ true objectives, the statement added.
Quantela's latest OaaS deployment is in the Indian state of Kerala. The $20 million project will be the first-of-its-kind in India, which enables the state to reduce road fatalities by improving traffic rules enforcement.