Singularity Automation Pvt. Ltd, which provides an Internet of Things-based platform to budget hotels and companies that offer shared accommodation, has raised its first round of institutional funding.
The Bengaluru-based startup has received Rs 8.5 crore ($1.15 million) from IvyCap Ventures as part of its pre-Series A round of funding, Singularity Automation said in a statement.
The funding will help Singularity Automation expand into new segments and accelerate its product development to enter geographies outside India in Asia where the market size is expected to be over $2 billion, it added.
Singularity Automation was founded in 2016 by IIT Kharagpur alumni Chakradhar Reddy Veeramreddy and Akash Goel.
The startup says its platform, based on cloud and edge computing, is focused on companies operating in the shared accommodation industry to manage thousands of properties across multiple cities.
The platform is said to help increase the profitability of property owners and make operations more efficient for facility managers. It is also expected to provide enhanced customer experience for the end tenant.
Goel said that with the rise of budget hotels, student living, co-living and co-working spaces, the industry is getting organized rapidly. There is a demand for greater efficiency, centralized control and visibility for improving the bottom line of the properties, he added.
Vikram Gupta, founder and managing partner at IvyCap Ventures, said the company’s software as a service (SaaS) based model and the inherent stickiness of its offerings made the venture capital firm to invest in the startup.
IvyCap Ventures, which was founded in 2011 by Gupta, says it focuses on an entrepreneur-centric investment approach, with an emphasis on sectors such as consumer, healthcare, enterprise technology, financial technology and emerging technology.
In November last year, IvyCap led a Series A funding round in healthcare platform BeYouPlus. In September, the venture capital firm had backed Pharmarack, a healthcare-technology platform that lets businesses automate sales and operations.
The venture capital firm operates at least two funds, with other companies in its portfolio including Biryani By Kilo, Clovia, Vinculum, GrabOnRent, and BlueStone.