Briston Technomach Pvt. Ltd, a Delhi-based Internet of Things (IoT) startup, is in advanced talks to raise funding from a larger Gurgaon-headquartered industry peer as part of its pre-Series A round, a person familiar with the development told VCCircle.
The company plans to raise Rs 10 crore (nearly $1.5 million) in this round, the person said, asking not to be identified.
The company is also in talks with several wealthy individuals, particularly from construction and mining sectors, to raise funds. “They are mainly Briston’s clients. It has been offering to them smart IoT solutions, enabling them to reduce their energy needs,” the person said.
The person didn’t reveal the identity of the Gurgaon-based potential investor but said the strategic partnership will enhance Briston’s prospects.
The company is likely to finalise the fundraising in next one month, the person said, adding that the round is not yet closed.
Briston CEO Arpeet Gupta declined to comment on the development.
The startup was launched in 2014 by IIT Delhi graduates Gupta and was later joined by Anil Sagar. Before starting this venture, Gupta had worked with VE Commercial Vehicles Ltd while Sagar was earlier associated with organisations such as Nokia, Bharti Airtel, Ericsson and Wipro.
Briston’s flagship product is remote fuel monitoring solution FuelArk. The company also provides automation and remote assets monitoring solutions. It has about 85 clients in the construction, mining and power back-up sectors.
The company claims to have a nation-wide sales channel in partnership with the distribution network of a power company. This has expanded Briston’s reach to Kolkata, Bengaluru, Maharashtra, Goa, Haryana and Uttar Pradesh.
In an earlier interaction with VCCircle, Gupta had identified setting up a data analytics lab and recruiting people as key targets. He was also looking to enter other emerging markets in Asia.
Briston is among a bunch of IoT startups that have come up in India over the past few years to tap into a nascent but growing market. The Union government’s department of electronics and information technology is also preparing a policy for the IoT industry; its draft policy aims to create a $15 billion IoT industry in India by 2020.
Some IoT ventures that have attracted investors include Bengaluru-based Smartron India, which raised funds from cricket legend Sachin Tendulkar in March.
In February, Delhi-based Freedom Smart Labs Ltd secured around $145,000 in seed funding while Pune-based Altizon Systems Pvt Ltd raised $4 million in Series A funding led by Wipro Ventures and Lumis Partners.
Cube26 Software Pvt Ltd raised Rs 50 crore in seed investment from Tiger Global and Flipkart last year.
*This article has been updated to correct some factual errors.
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