Connexin secures ‘landmark’ funding deal

A Hull-based technology company has secured a financing package worth up to £35 million to accelerate the rollout of smart water meters across the UK.

Connexin has agreed the funding with Santander UK and investment manager PATRIZIA in a deal believed to be the country’s first financing arrangement dedicated to a smart water meter network.

The package includes a £10 million facility from Santander UK, a £5 million revolving trade facility and £10 million provided through PATRIZIA-managed funds.

A further £10 million accordion facility brings the total potential funding to £35 million.

Bosses say the investment will support Connexin’s expansion as water companies increasingly turn to smart metering technology to improve efficiency and address challenges surrounding water scarcity and ageing infrastructure.

Smart meters provide more detailed information about consumption, helping suppliers identify leaks, reduce waste and manage water resources more effectively.

Furqan Alamgir, founder and chief executive of Connexin, said: “This is a landmark transaction for Connexin and an important step in our mission to build smarter, more connected infrastructure that helps tackle some of society’s biggest challenges.

“The water sector is facing enormous pressure, from scarcity and leakage to ageing infrastructure. 

“We believe better data and the ability to turn that data into better decisions, will be fundamental to solving these challenges.

“Smart meters and sensors are creating an unprecedented view of how our water networks are performing. 

“Through ConnexinOS and our business intelligence capabilities, we can bring that data together and turn billions of data points into actionable intelligence, helping water companies anticipate problems, target investment and make faster, smarter decisions.

“For us, smart metering is about much more than connecting a meter. It is about building the data and intelligence layer for the water sector. 

“This financing gives us the capacity to accelerate that vision and help create a future where critical infrastructure is connected, intelligent and increasingly predictive.”

Jonathan Corcoran, director of specialised and project finance at Santander UK, added: “We are pleased to support Connexin with this innovative financing package, which will help accelerate the rollout of smart water infrastructure across the UK.

“Projects like this play an important role in improving efficiency, increasing resilience, and modernising vital public services. 

“This transaction reflects our confidence in Connexin's growth ambitions and our commitment to supporting businesses that are investing in the UK's digital infrastructure and long-term economic growth.”

Phoebe Smith, head of infrastructure fund management, Europe at PATRIZIA, added: “Digitalisation can improve the infrastructure we already rely on. 

“Connexin’s smart metering network is a clear example, helping water companies identify leaks and manage water resources more effectively. 

“For our investors, this combines long-term demand for essential services with the opportunity to improve how those services operate. 

“This financing will support Connexin’s next phase of deployment and reflects our confidence in the role digital infrastructure can play in modernising the UK’s water networks.”

Connexin is developing a nationwide network combining smart metering technology, communications infrastructure and its ConnexinOS platform to give water companies greater visibility of consumption patterns.

The financing also highlights the growing role of private investment in modernising the UK's water infrastructure.

With demand for smart metering expected to increase, the company aims to accelerate deployment and strengthen its support for water providers across the country.

Luke Campbell MBE, mayor of Hull and East Yorkshire, added: “Hull and East Yorkshire have the ambition to become a driving force in the UK’s digital economy, attracting inward investment, supporting innovation and building smarter, better-connected communities.

“Connexin is a fantastic example of homegrown innovation driving that ambition forward. 

“This landmark investment is a vote of confidence in our region and its businesses, demonstrating how technology and data can transform critical infrastructure, tackle real-world challenges and contribute to a more sustainable future.

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