Deal focus: SensorFlow’s coronavirus pivot

SensorFlow, which offers hotels a wireless energy management solution, had early insight into the economic impact caused by the coronavirus outbreak.

“When the border shutdowns happened, you could clearly see energy consumption plummet [across hotels]. You could see floors or properties being shut down,” says Saikrishnan Ranganathan, SensorFlow’s co-founder. “It was obvious that everyone was dealing with a pandemic.”

The company’s core product – an indoor sensor and a smart thermostat that automates energy management in a hotel – gave Ranganathan’s team clear visibility into the health of the travel sector. They realized they must change tack in a bid to win new clients

Instead of charging a monthly fee and then waiting for a few months before settling on an additional sum based on actual electricity usage, SensorFlow switched to a variable cost model. The company now charges new customers a fraction of monthly savings made possible by using the product. “We told them: ‘We get where you're coming from. Just install it and every month, we'll let you know how much you've saved,’” says Ranganathan.

Given that the product can be installed within five minutes through a remote installation process, sales have continued despite lockdown measures in several Asian markets. But even if new orders slow, SensorFlow has an existing backlog to fulfill anyway.

Over a year of rapid growth, more than 50 hotel chains signed on as clients installing the product in more than 5,000 rooms across Southeast Asia. Orders have already been placed for SensorFlow’s solution to be introduced in an equal number of rooms in the coming months.

Last week, SensorFlow received $8.3 million in funding led by Hong Kong-based Gaw Capital and Openspace Ventures. Ranganathan’s team hopes to leverage the network of partners and investors to introduce the solution to hotels in Europe and North America. Meanwhile, Gaw is likely to support expansion in China.

Unlike energy management solutions offered by traditional heavyweights like Schneider Electric and Honeywell, Ranganathan maintains that SensorFlow stands apart because its solution does not require an installation cost and is quick and easy to install. The company’s transparent cost model has also made it easy for building managers to see the value as well.

Further, SensorFlow’s team has been willing to develop customized solutions to solve a client’s problems. “The top two expenses are labor and energy. We can help with both those expenses,” Ranganathan says.

The sensor gives a clear picture of real-time hotel occupancy that can help housekeeping staff optimize cleaning routes, for example. Similar solutions are being developed for guest service teams or engineering personnel.

In the long run, once borders open and travelers begin to board flights once more, Ranganathan believes hotel chains that invest in such energy management solutions will benefit, especially as there is a rising awareness among hotels for the need for energy conservation.

Whenever that happens, SensorFlow’s engineers will probably the first ones to know.   

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• Topics
• Southeast Asia
• Technology
• Real estate
• Early-stage
• TMT
• Openspace Ventures
• Gaw Capital Partners
• coronavirus
• covid-19