The $20 million project will be the first of its kind in India which enables the state to reduce road fatalities by improving traffic rules enforcement.
Quantela Inc., an emerging IoT-enabled Smart Cities and urban infrastructure digitization, announced that it has closed approximately US$40 million in growth capital for new Outcomes-as-a-Service projects and acquisitions from Digital Alpha, a leading digital infrastructure investment firm.
Quantela and Digital Alpha have pioneered an Outcomes-as-a-Service (“OaaS”) approach to Smart Cities and urban infrastructure, leveraging customer outcomes such as revenue generation and expense savings to finance the capital investment for its solutions. The OaaS approach enables Quantela to share responsibility with customers for achieving their social, economic, and environmental sustainability goals, delivering greater value in the form of tangible outcomes that generate revenues or create new efficiencies.
“The growth capital from Digital Alpha is a validation of the market opportunities that exist for us”, said Sridhar Gadhi, Founder and Executive Chairman, Quantela Inc. “While Quantela has been growing exponentially since inception, the funding will enable us to expand our global presence faster through a combination of acquisitions and new OaaS projects, creating greater impact for societies.”
“Digital Alpha is excited to deepen its existing partnership with the Quantela team, and to fund its novel outcome-based financing solution for the Company in order to pursue its differentiated OaaS model”, said Rick Shrotri, managing partner at Digital Alpha. “Quantela has clear, market-leading capabilities in Smart Cities, which have delivered tangible outcomes for its customers globally, addressing critical societal issues such as the digital divide, safety, security, and environmental sustainability.”
Beyond technology, Quantela enables communities to digitize their infrastructure despite budgetary restrictions by financing the initial investment and engendering a true partnership between technology providers and clients. Quantela recoups the original investment based on actual outcomes of cost savings from deployment of technologies such as smart lighting or smart waste management as well as incremental revenues earned from user charges such as parking, advertising revenue, traffic violation tickets, or anonymized aggregated data monetization. This integrated approach focuses on tangible outcomes and long-term commitment to achieve customers’ true objectives. The approach ensures that all parties are driven to meet and exceed project goals, creating a win-win for all involved.
The OaaS model has been successfully implemented in the city of Erie, PA, where city leaders leveraged an initial investment from Quantela’s investment partner Digital Alpha to secure a matching grant that doubled the budget for the project to set up free public Wi-Fi across 8 Federal Opportunity Zones. Erie will provide free public Wi-Fi to its citizens while implementing enhanced law enforcement surveillance, smart traffic control, smart parking, and energy-efficient street lighting.
Quantela’s latest OaaS deployment is in the Indian state of Kerala. The $20 million project will be the first of its kind in India which enables the state to reduce road fatalities by improving traffic rules enforcement.
Source: Business World