Amid rapid industrial growth and escalating water scarcity, water management has become a critical concern for industries worldwide. India, with its burgeoning industrial sector, is experiencing acute water challenges.
According to a 2020 NITI Aayog report, over 600 million people in India are facing severe water stress, and 21 cities are predicted to deplete their groundwater reserves by 2030. The industrial sector, a major consumer of water, contributes significantly to this crisis.
Serial entrepreneur Ganesh Shankar realised the urgent need for innovative solutions in water management and founded FluxGen in 2019. The B2B startup provides end-to-end water solutions to optimise industrial water usage, enhance efficiency, and promote sustainability.
“The idea for FluxGen came from a deep concern for our water resources and a desire to make a tangible difference. I wanted to develop a solution that would enable industries to manage their water consumption more efficiently and contribute to the larger goal of sustainability,” Shankar, Founder and CEO tells YourStory.
The startup began operations in 2021 after three years of research and development. It leverages artificial intelligence (AI) and Internet of Things (IoT) to help businesses monitor and optimise water usage in real-time.
Shankar was later joined by Emanuel Deepak, who was promoted from senior manager to COO.
Integrating IoT and AI
The Bengaluru-based startup has developed AquaGen, an advanced water management system that monitors water flow and levels in real-time to optimise water usage, enhance efficiency, and ensure sustainability in industrial settings.
Using IoT-enabled sensors and AI, AquaGen integrates with existing water infrastructure to monitor facilities. The system collects data from strategically placed sensors, transmitting it to a cloud platform to analyse consumption patterns and forecast future usage.
“We enable industries to gain real-time insights into water usage, identify inefficiencies like leaks or excessive consumption, and receive immediate alerts through a user-friendly mobile and web application,” says Shankar, who has worked for over 13 years in the sustainability and climate tech sectors.
He previously founded Airprobe.Tech (acquired by US-based Zeitview), a drone analytics startup for solar farm inspection, and The Sustainability Mafia, a network promoting collaboration among sustainability leaders.
The company says its data-driven approach helps industries reduce water wastage by up to 30%. One of the ways is by minimising non-revenue water loss, which is water produced but not billed due to leaks, theft, or metering inaccuracies.
Its AquaGPT feature offers prescriptive alerts and recommendations based on analysing historical data to predict future water usage patterns, allowing for proactive management.
Additionally, FluxGen launched ‘Rainwater Intelligence’ and ‘Waste Water Intelligence’ in April 2020, enhancing rainwater harvesting and boosting the efficiency of sewage and effluent treatment plants.
Business model
FluxGen started with Rs 1 crore funding from angel inventors and has a team of 35 people.
The startup generates revenue through the sale of its AquaGen system and yearly subscriptions to its software platform, which is equipped with analytics, reporting, and monitoring capabilities. The founder says cost varies depending on the specific requirements of each facility, including the number of sensors needed and the features selected.
The startup primarily operates in healthcare, manufacturing, commercial real estate, and public services sectors and serves over 110 customers including Tata Steel, Aditya Birla Group, Microsoft, Ashok Leyland, and Adani Group.
Its revenue grew from about Rs 1 crore in FY23 to Rs 5 crore in FY24 and saw an increase in booking value from under Rs 2 crore to Rs 11 crore, during the same period.
FluxGen recently partnered with Microsoft to implement a water replenishment project at St. Martha’s Hospital and Whitefield Hospital in Bengaluru. The project uses sensor fusion, AI, and IoT technology to reduce water usage by 50% and won the Microsoft Entrepreneurs for Positive Impact Cup 2024.
Market and challenges
The water and wastewater treatment technology market in India is valued at $1.02 billion in 2024 and is expected to reach $1.71 billion by 2029, according to Mordor Intelligence.
The startup is in talks with investors to raise around $5 million and plans to close it in the coming 2-3 months. It aims to achieve Rs 100 crore in revenue within the next three years.
It is set to deploy its solutions in Africa and the Middle East following pilots and expects to receive commercial orders soon.
While talking about challenges, Shankar explains, “Navigating the water sector in India was like trying to swim upstream. The perception of water as a low-cost resource meant there was little urgency to invest in conservation, and the presence of established giants in the industry made it even tougher for a startup like ours to gain a foothold.”
“But we knew that water scarcity was a ticking time bomb, so we focused on innovation, creating solutions that not only addressed immediate needs but also positioned us ahead of the curve as regulations and investor demands began to catch up,” he adds.
