SensorFlow claims to have recorded a 1,000% increase in hotel room installations since 2019 and aims to install its solution in 1 million rooms by 2023.
Singapore-based proptech startup SensorFlow announced on Thursday that it has secured US$8.3 million in a Series A+ funding round led by early-stage technology investor Openspace Ventures and global real estate investor Gaw Capital Partners.
Proptech focused venture capital (VC) fund Aurum Investments and existing investor Pierre Lorinet, a finance sector veteran and private investor, also participated in the round.
The fresh funds will be used to develop the company’s smart building management solution for heating, ventilation, and air-conditioning (HVAC) systems, along with global expansion, and talent acquisition in hardware and data science, according to the statement.
In February 2019, SensorFlow raised $2.7 million in a Series A funding round led by Pierre Lorinet, with participation from Cocoon Capital and Playfair Capital. With the latest funds, SensorFlows’s total funding stands at $13.6 million.
SensorFlow offers commercial buildings, like hotels and offices, the ability to automate HVAC systems, monitor equipment performance, and optimize housekeeping routes through an Internet of Things (IoT) technology and Artificial Intelligence (AI)-driven solution.
According to the company, SensorFlow’s solution allows real-time data tracking to help properties monitor energy consumption trends, provides maintenance alerts, and can be installed in less than five minutes. The company claims that their solution saves 30%-50% of hotel HVAC costs, which can lead to savings on total hotel energy bills of up to 30%.
Founded in 2016, SensorFlow has been signed on by about 10,000 hotel rooms across Southeast Asia and says it has recorded a 1,000% increase in hotel room installations since 2019. Dorsett Hospitality International, Accor, The Ascott Limited, and Hyatt are among the startup’s notable clients.
“Through our smart automation solution, we want to make advanced sustainability technologies the new standard in the global hospitality industry,” CEO and Co-founder of SensorFlow Saikrishnan Ranganathan said.
Managing Principal and Head of Capital Markets at Gaw Capital Partners Christina Gaw said, “We foresee big commercial real estate owners and hotel operators integrating smart building solutions in a not-too-distant future.”
The startup aims to develop its solution to automate HVAC systems with heating features to target markets with colder climates. According to the statement, SensorFlow will launch its solutions in the US, the UK, Europe, and Australia this year, and aims to install its solution in 1 million rooms by 2023.
SensorFlow is developing new features within its ‘Productivity Suite,’ including ‘housekeeping view,’ which optimizes cleaning routes amid a shortage of employees during the COVID-19 pandemic.
The startup has also adopted a floating payment model which will charge hotels a fixed percentage of each month’s energy savings, thereby reducing cash strain and allowing hoteliers to benefit from energy or cost savings immediately.
“For the hospitality sector, the need for optimizing energy and operational efficiency is especially pertinent now as it works on recovering from the COVID-19 pandemic,” said Ranganathan. “Our technology can help hotels and properties maximize the use of limited resources, adopt clean technologies, and become more sustainable.”
In the long term, he added, SensorFlow’s solutions could be used to save on costs and rebound more quickly from the effects of the ongoing pandemic.
“SensorFlow’s cutting-edge solution leads to energy and operational efficiency gains that contribute to substantial cost savings,” said Openspace Ventures VP of Investments Gervin Yang. “This is especially important in the current climate and can be adopted by any property manager looking to increase profitability as well as to reduce their impact on the environment.”
Header Image Courtesy of SensorFlow.