Egyptian Pylon raises $19 million

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  • Egypt-based infrastructure management platform Pylon has raised $19m in a seed funding round including equity and debt, led by Endure Capital, Cathexis Ventures, Khawarizmi Ventures, Loftyinc Ventures and angel investors.
  • Founded in 2017 by Ahmed Ashour and Omar Mohamed Radi, Pylon is democratizing smart grid infrastructure for energy and water utilities in emerging markets, enabling them to capture up to $400 billion in losses and of uncollected income.
  • The investment will accelerate Pylon’s growth through expansion into other emerging markets (Southeast Asia, Africa, Latin America) and advance engineering and product development.

Press release:

Pylon, the infrastructure management platform transforming electric and water utilities in emerging markets, announces $19 million seed funding round.

The fast-growing startup’s seed round – which is profitable and grew 3.5x in 2021 – began with seed funding from US tech startup accelerator, Y Combinator, and attracted a diverse group of investors from North America and MEA.

This funding round, comprising equity and debt, was led by Endure Capital, which is backed by CDC, the UK government’s development finance institution. Also in attendance were Cathexis Ventures, Khawarizmi Ventures, Loftyinc Ventures and various high profile angel investors.

The product will accelerate Pylon’s growth through expansion into other emerging markets (Southeast Asia, Africa, Latin America) and advance engineering and product development. The startup is already working with several companies on two continents that have deployed more than one million terminals of Pylon’s smart grid technology, across 15 distribution companies. Pylon’s goal is to increase its smart metering points to three million by 2023, which would represent 4x year-on-year growth.

Pylon doesn’t charge utility companies an upfront cost for its hardware, but its model, Smart Metering as a Service (SMaaS), makes it easy for money-conscious utility companies to deploy its solution at scale. With no upfront investment, Pylon can help utility companies increase revenue by up to 40%, simply by signing up.

Pylon is democratizing smart grid infrastructure for energy and water utilities in emerging markets, enabling them to capture up to $400 billion in losses and uncollected revenue. Pylon’s platform uses data and artificial intelligence to improve revenue collection, reduce losses and achieve a more efficient environmental footprint.

Pylon is saving the planet, one measurement point at a time, as smart grids can reduce utility carbon emissions by 25%. Another of Pylon’s goals is to achieve 1 gigatonne of total reduction in CO2 emissions by 2035. Water losses in emerging markets also reach more than 45 million cubic meters/day. Pylon can reduce this by up to 22%, potentially providing enough water to serve over 40 million people.

Ahmed Ashour, co-founder and CEO of Pylon, said: “We are delighted that our solution has generated such interest and acceptance from a wide range of global investors. Our impact-driven vision of developing technology to better manage resources, eliminate inefficiencies and eliminate pain points in the utility industry has sparked a call to action and many have responded.

“Our plug-and-play solution and flexible pricing models give utilities all the benefits of smart grids just by signing up with us, increasing their overall revenue by up to 40%. With a $22 billion market opportunity, we offer a compelling model for investors looking for a fast-growing, profitable business that, most importantly, has a meaningful impact on preserving our planet. Pylon’s ultimate goal is to benefit humanity, our customers and our stakeholders.

“2022 will be an exciting year for Pylon as we embark on our next phase of growth which will see us expand further into Africa, Latin America and South East Asia. We will also seek increased borrowing facilities to accelerate the accessibility of infrastructure solutions to public services in fragile economic landscapes.

Tarek Fahim, GP and Founder of Endure Capital, said, “We are delighted to support the strong team at Pylon as they develop a unique software solution to support more sustainable and intelligent infrastructure for utility companies in the markets. emerging. As one of the highest valuations ever for an early-stage company in the Middle East and Africa, we are excited to be at the forefront of positive change in the region.

“We believe there is a multi-billion dollar market opportunity and that Pylon’s frictionless model provides a compelling solution for utility companies to be more efficient, sustainable and digitally driven. Most importantly, we believe that Pylon will have a significant environmental impact on preserving our planet, benefiting our local communities and creating sustainable economic value for our own stakeholders.

Ahmed Medhat, Pylon Board Advisor (and Principal Investigator at Meta), commented: “When Ahmed Ashour and co-founder Omar Radi first explained to me what they had built, I was immediately hooked. Both have taken a bold and imaginative approach to solving inefficiencies in legacy utility delivery systems in emerging markets, and I’m hugely impressed with the financial traction they’ve shown just months after their MVPs.

“By focusing their R&D and overall product philosophy on approaches that match the specific market dynamics of emerging market utilities, Pylon has developed its unique SMaaS model and has been able to overthrow major international players whose solutions Out-of-the-box utility management solutions do not match the needs of local utility companies in emerging markets.


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