Circolife Raises $4.5M for Cooling-as-a-Service Expansion

In a significant development for India's burgeoning climate-tech sector, Circolife has successfully closed a $4.5 million pre-Series A funding round. The investment, spearheaded by prominent investor Bharat Jaisinghani, joint managing director of Polycab India, signals strong confidence in Circolife's innovative subscription-based air conditioning model. The capital infusion is earmarked for substantial expansion, including growing its fleet of AC units, extending its operational reach across more Indian cities, and enhancing its service infrastructure. Furthermore, the funds will bolster the development of its AI-driven IoT platform, designed for predictive maintenance, a critical component in optimizing the longevity and efficiency of cooling systems.

Founded in 2023 by Abhishek Murarka, Tushar Patil, and Devanshu Mishra, Circolife addresses a growing demand for accessible and hassle-free cooling solutions. The company's unique approach allows customers to subscribe to air conditioning services rather than purchasing units outright, encompassing installation, maintenance, and servicing. This model is particularly attractive in a market where upfront costs can be a barrier. Circolife currently operates in five major Indian cities and has ambitious plans to quadruple its subscriber base to 40,000 units within the next two years, a target that this funding round is expected to facilitate.

The funding round saw participation from a diverse group of investors, underscoring the broad appeal of Circolife's business model. Beyond Bharat Jaisinghani, the round included contributions from individual investors, funds, and family offices such as Nitish Mittersain, Intelliquity Ventures, and Anant Goenka. This collective backing highlights a shared vision for scaling a service that aligns with both consumer needs and environmental considerations, particularly as India grapples with rising temperatures and increasing energy consumption.

Beyond the headline funding for Circolife, the Indian startup ecosystem saw other notable activities. In the pharmaceutical distribution space, Fundly.ai secured $4 million in a funding round led by existing backers Accel and Multiply Ventures, with additional support from former RBL Bank executive director Rajeev Ahuja and other angel investors. This capital will be used to enhance Fundly.ai's digital commerce, payment, and credit offerings within the pharmaceutical supply chain.

Watertech innovator DigitalPaani raised INR 22 crore (approximately $2.3 million) in a round led by Navam Capital, with participation from Enzia Ventures, Chakra Growth Capital, 3one4 Capital, and Momentum Capital. DigitalPaani's AI and IoT-powered platform assists businesses and municipalities in managing water and wastewater infrastructure, currently serving over 95 facilities that process more than 150 million liters of water daily. The funds will support expansion into industrial and municipal markets, as well as international ventures.

In the gaming hardware sector, ARC garnered INR 10.5 crore in pre-seed funding from Chimera VC and MIXI Global Investments, with personal investment from Meta APAC director Dhruv Vohra. This capital will accelerate the development of its portable gaming system, ARC X1, and its OWL OS gaming software. Meanwhile, fabric care startup Iztri raised INR 10 crore in a seed round led by All In Capital and Suashish Group, joined by notable angel investors including Anupam Mittal, Kunal Shah, Tanmay Bhat, Gaurav Munjal, Roman Saini, and the founders of Shadowfax, Abhishek Bansal and Vaibhav Khadelwal. Lastly, clean-label beverage brand Sorry Sugar closed a $1 million seed round co-led by the Dhanuka family and Amishi London, aiming to expand its market presence and introduce new products.