$19 M seed funding received by YC-based Egyptian infrastructure management startup Pylon
Pylon, an Egyptian startup that aims to change power and water providers in emerging economies, has secured a US $19 million early investment round to help it expand into other regions.
Pylon is a smart infrastructure management platform that offers energy and water businesses in emerging economies a subscription-based “Smart Metering as a Service” (SMaaS).
At no upfront investment, the startup offers a customised end-to-end software solution that is adaptable to both old and new metering methods and aids in the reduction of operational inefficiencies, revenue collection, and a more efficient environmental impact. Pylon gives energy and water distribution businesses access to smart grid technology, allowing them to recover up to $400 billion in lost and uncollected income.
Pylon is already collaborating with numerous firms across two continents who have implemented more than one million end points of Pylon’s smart grid technology across 15 distribution companies. Pylon is profitable and expanded by 3.5x in 2021. Following a US $19 million seed investment, it is now looking to expand further.
The round began with a seed investment from Y Combinator, a New York-based business incubator, and has subsequently attracted a varied mix of investors from North America, the Middle East, and Africa. It was led by Endure Capital, which is supported by CDC, the UK government’s development financing institution, and includes both equity and debt. Cathexis Ventures, Khawarizmi Ventures, LoftyInc Capital Management, and a number of high-profile angel investors are also taking part.
Pylon’s expansion into additional emerging markets in Southeast Asia, Africa, and Latin America, as well as engineering and product development, will be aided by the funds. Pylon wants to reach three million smart metering stations by 2023, which would be a fourfold increase year over year.
“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.”
According to Ashour, the firm intends to seek greater financial facilities in order to speed up the availability of infrastructure solutions to utilities in volatile economic environments.
“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.
