Hull-based technology company Connexin has secured a £35m funding package to support the nationwide rollout of smart water meters. The broadband and digital connectivity provider, which has a turnover of £16.3m, believes the deal represents the first financing arrangement in the UK specifically dedicated to smart water metering.
The package comprises £10m from Santander UK, alongside a £5m borrowing arrangement, £10m in financing from investor Patrizia, and an additional £10m borrowing facility. The 100-strong firm, headquartered at K3 Business Park, says the investment is crucial for modernising the UK's water infrastructure, with smart metering offering a solution to water scarcity and deteriorating network systems.
How smart meters help
By giving customers and water companies improved data on consumption, smart meters can help detect leaks, cut wasteful usage and enable more effective water management, the company says. The fresh funding will allow Connexin to accelerate its meter installation programme for water companies across the UK.
Furqan Alamgir, founder and CEO of Connexin, said: "This is a landmark transaction for Connexin and an important step in our mission to build smarter, more connected infrastructure that helps tackle some of society's biggest challenges. The water sector is facing enormous pressure, from scarcity and leakage to ageing infrastructure. We believe better data and the ability to turn that data into better decisions, will be fundamental to solving these challenges."
Data-driven approach
Alamgir added: "Smart meters and sensors are creating an unprecedented view of how our water networks are performing. Through ConnexinOS and our business intelligence capabilities, we can bring that data together and turn billions of data points into actionable intelligence, helping water companies anticipate problems, target investment and make faster, smarter decisions."
"For us, smart metering is about much more than connecting a meter. It is about building the data and intelligence layer for the water sector. This financing gives us the capacity to accelerate that vision and help create a future where critical infrastructure is connected, intelligent and increasingly predictive."
Investor and regional support
Phoebe Smith, head of infrastructure fund management, Europe at Patrizia, said: "Digitalisation can improve the infrastructure we already rely on. Connexin's smart metering network is a clear example, helping water companies identify leaks and manage water resources more effectively."
"For our investors, this combines long-term demand for essential services with the opportunity to improve how those services operate. This financing will support Connexin's next phase of deployment and reflects our confidence in the role digital infrastructure can play in modernising the UK's water networks."
Luke Campbell, Mayor of Hull and East Yorkshire, said: "Hull and East Yorkshire have the ambition to become a driving force in the UK's digital economy, attracting inward investment, supporting innovation and building smarter, better-connected communities. Connexin is a fantastic example of homegrown innovation driving that ambition forward."
"This landmark investment is a vote of confidence in our region and its businesses, demonstrating how technology and data can transform critical infrastructure, tackle real-world challenges and contribute to a more sustainable future."
