Saudi’s Khwarizmi Ventures has taken part in a seed funding round for Egyptian startup Pylon, an infrastructure management platform aimed at transforming electricity and water companies in emerging markets.
Smart Metering as a Service
Pylon is a smart infrastructure management platform that offers subscription-based Smart Metering as a Service (SMaas) for power and water companies operating in emerging markets. Founded in 2017, the company offers a tailored software package that works with both existing and more modern metering systems to reduce operational inefficiencies, improve revenue collection, and achieve a more efficient environmental footprint, at zero upfront cost. Pylon aims to bring smart grid capabilities to power and water distribution companies, allowing them to significantly reduce losses and uncollected revenue.
Pylon is already working with a series of companies and has deployed over one million end points of its smart grid technology to 15 distribution companies. The influx of USD 19 million in seed funds will be used to further expand its operations. Khwarizmi Ventures were joined by the UK government’s development finance Institution, Cathexis Ventures, LoftyInc Capital Management, and angel investors. The initial funding came from US-based accelerator Y Combinator.
The funds will be used to speed Pylon’s expansion into new emerging markets including Southeast Asia, Africa and Latin America, and advance engineering and product development. Pylon’s goal is to increase its smart metering points to three million by 2023, which would represent 4x year-on-year growth.
“We are delighted that our solution received such heightened interest and acclaim from a wide range of global investors. Our impact-driven vision of developing technology to better manage resources, eradicate inefficiencies and remove pain points in the utilities sector raised a call-to-action and many responded,” said Ahmed Ashour, co-founder and CEO of Pylon.
“Our plug-and-play solution and flexible pricing models give utilities the full benefit of smart grids just by signing with us – increasing their aggregate revenue by up to 40 per cent. With a US$22 billion market opportunity, we provide a compelling model for investors who seek a fast-growing, profitable company, which, most importantly, has a significant impact on preserving our planet. Pylon’s ultimate goal is to benefit humanity, our clients, and our stakeholders.” He went on to say that the startup planned to seek increased debt facilities to fast-track the accessibility of infrastructure solutions to utilities in friable economic landscapes.
“We are excited to support the strong team at Pylon, who are building a unique software-centric solution to support more sustainable and smart infrastructure for utilities companies in emerging markets. As one of the highest-ever valuations for a seed-stage company in the Middle East and Africa, and we are delighted to be at the forefront of positive change in the region,” said Tarek Fahim, GP and founder of Endure Capital.