FluxGen Bags INR 28 Cr To Scale Up Its AI-powered Water Intelligence Solutions

SUMMARY

Climate tech startup FluxGen has raised INR 28 Cr from IAN Alpha Fund, with plans to enhance its water management solutions and expand to international markets

Founded in 2021, the Bengaluru-based startup works with over 110 clients including TATA Steel and Microsoft, helping companies reduce water consumption by up to 30%

The Indian smart water management market presents a significant opportunity, estimated to be worth INR 42,000 Cr over the next decade

Climate tech startup FluxGen has secured INR 28 Cr ($3.36 Mn) in a Pre-Series A funding round led by IAN Alpha Fund.

The round also saw participation from Rainmatter, Gameskraft Technologies, Intersection Ventures and Force Ventures, along with existing investors Axilor Ventures and Arali Ventures.

The Bengaluru-based startup will use the fresh capital to scale up its AI and IoT-powered water management solutions. Additionally, it also aims to strengthen its presence in India while also expanding its footprint in the overseas markets like the Middle East and Africa.

Founded in 2021 by Ganesh Shankar and Emanuel Deepak, FluxGen offers water intelligence solutions that help industries monitor water usage in real time, analyze consumption patterns and ensure regulatory compliance.

“Water is a business imperative. With the increasing impact of climate change and stringent regulations, businesses need to act fast. This investment enables FluxGen to scale its AI-powered water intelligence solutions,” Shankar said.

The startup currently claims to serve over 110 clients across sectors, including metals, food and beverages, textiles, pharmaceuticals, automotive and healthcare. It counts TATA Steel, Aditya Birla Group, Care Hospitals, Mahindra Group and Microsoft among its client portfolio.

FluxGen also said in the statement that its AquaGen platform has helped customers reduce water consumption by up to 30%, delivering both financial savings and environmental benefits.

The funding comes amid growing investor interest in climate tech startups. In December, last year, Delhi NCR-based Sustainiam raised $1.45 Mn in a Pre-Series A funding round led by Orios Venture Partners to scale its carbon footprint management platform.

Meanwhile, climate-focused VC firm Green Frontier Capital has also launched a INR 1,500 Cr fund targeting climate tech ventures at seed to Series A stages. Led by Wall Street veteran Sandiip Bhammer, the fund will focus on technologies enabling decarbonization, digitisation, and disruption.

According to an imarc report, the expenditure in this sector was $2.87 Bn in 2024 and is projected to reach $4.65 Bn by 2030. This growth is driven by India’s increasing industrial production and manufacturing sector, which is expected to contribute up to 17% of the country’s GDP.