Atlanta and Chennai-based Facilio has raised $6.4 Mn (INR 45.12 Cr) in a Series A funding in a round led by New York-based investment firm Tiger Global and existing investor, venture capital firm Accel Partners.
Talking to Inc42, Prabhu Ramachandran, cofounder and CEO, Facilio, said that the company will use fresh funds to consolidate and strengthen its presence across the Middle East, US, and Indian markets.
“The funding will allow us to pursue our expansion and consolidation plans aggressively, while also investing in research and development for product innovation especially in our artificial intelligence and machine learning capabilities,” Ramachandran added.
With the fresh funding, Facilio will now set up on-ground teams in the US and UAE.
Former Zoho employees Prabhu Ramachandran, Rajavel Subramanian and Yogendrababu Venkatapathy founded Facilio in 2017 for commercial real estate owners. The startup leverages Internet of Things (IoT) and machine-learning technologies to help in managing buildings operations, maintenance, and sustainability.
In 2017, the company had raised $1.5 Mn (INR 10.59 Cr) in funding from Accel Partners
Related Article: Tiger Global To Invest $5-6 Mn Each In Two Indian Software Platforms
How Is Facilio Creating A Niche In India?
Facilio uses its all-in-one app suite to unify facilities and sustainability management across a portfolio of large buildings.
“Facilio has exhibited strong performance and growth over the past year which is a direct result of the exceptional credentials of the team, their sharp go-to-market strategy and their excellence in execution,” said Shekhar Kirani, Managing Partner, Accel Partners.
Ramachandran told Inc42 that average price of its product varies for each building from $5K – $10K (INR 3.53 Lakh – INR 7 Lakh) depending on the number of users, and buildings.
He said that in India, for this space, it is cheaper to employ people and it is a hurdle when it comes to getting them to invest in technology.
However, as the company progressed, it claims to have seen good traction of consumers in India as well.
“With the emergence of co-working spaces, the need for an experience-driven workplace has also evolved. Traditional realtors who own such big co-working spaces look at technology as a value addition when they speak to companies,” he said.
The company challenges major players like IBM, Oracle, SAP etc, which enable smart buildings and facilities management, and other six to seven mid-tier players like Accruent, Planon, FM:Systems and iOffice among others.
To challenge these, Ramachandran believes that Facilio’s USP is to offer energy and water management along with facility management.
Tiger Global: New Chapter In Indian Startup Ecosystem
The investment comes after reports surfaced that Tiger Global Management was in advanced talks to invest about $5 Mn – $6 Mn each in two Indian software platforms—Fyle and Facilio via its new $3.75 Bn fund—Tiger Global Private Investment Partners XI.
The firm was looking to invest in consumer internet, cloud computing, industry software as well as direct-to-consumer sectors.
Lee Fixel, partner, Tiger Global, said, “bringing data-driven efficiencies to building operations and enabling a superior occupant experience is the future of commercial real estate, and Facilio is well positioned to lead this transformation. The company’s passion and vision to tackle a universal problem with significant impact and growth potential are highly compelling.”
The smart buildings and facilities management space is expected to grow to $7 Bn by 2022, according to a research report by Verdantix. A March 2016 report by Google and Accel Partners expects the Indian SaaS market to become a $10 Bn revenue industry by 2025.
The Indian facilities management market is expected to grow at 17% CAGR between 2015 and 2020 and surpass the $19 Bn mark supported by booming real estate, retail, and hospitality sectors.