Facilio raises funds in round led by Tiger Global, Accel
Facilio plans to use the funds for consolidation and expansion, apart from investing in research and development
New Delhi: Facilio, which offers real-time facilities management to real estate owners, has raised $6.4 million in a Series A funding round led by Tiger Global Management and existing investors Accel. The investment marks Tiger Global’s return to India’s internet story after realizing attractive returns from stake sales in online retailer Flipkart and cab aggregator Ola. The New York-based investment firm has raised $3.75 billion for private market investments, according to an Economic Times report.
Tiger Global is slowly stepping up the pace of investments in startups after entirely halting investing in the past two years, Mint reported.
Facilio raised $1 million in seed funding from Accel in March this year. Founded in 2017, the company offers internet of things (IoT)-driven facilities management for buildings to commercial real estate owners.
“Bringing data-driven efficiencies to building operations and enabling a superior occupant experience is the future of commercial real estate...” said Lee Fixel, partner at Tiger Global Management, in a statement. “On a global basis, facilities management services and energy spend by buildings each account for more than a trillion dollars.”
Started by ex-Zoho employees Prabhu Ramachandran, Rajavel Subramanian, Yogendra Babu and Krishnamoorthu Rangasamy, Facilio uses machine learning to harness data from buildings, analyse the information, and fixes anomalies in the system accordingly.
The integrated software helps facilities manage maintenance, operations, sustainability and tenant experience. It helps companies reduce overall operational expenses by 5-10% and increases the life cycle of an asset by 20-25%.
The Atlanta, US- and Chennai-based startup has operations in India, Middle East and the US.
Facilio manages 20 million square feet of built space with nearly 12 clients on board.
“We are getting good interest from the European markets and we will also be exploring that too ahead,” said Ramachandran, co-founder and chief executive officer at Facilio.
The global real estate and building management software market is poised to grow over $7 billion by 2022, according to research consultancy Verdantix.
“The funding will allow us to pursue our expansion and consolidation plans aggressively, while Also investing in research and development for product innovation,” added Ramachandran.
Facilio aims to touch $5 million in annualised recurring revenue of over the next 12-18 months.
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