Quantela raises $40 million from Digital Alpha

Smart city and urban infrastructure services provider Quantela has raised about $40 million (nearly Rs 300 crore) from Digital Alpha to fund new projects and acquisitions.

Quantela and Digital Alpha, which invests in digital infrastructure, have created an outcomes-as-a-service (OaaS) approach to smart cities and urban infrastructure, leveraging customer outcomes such as revenue generation and expense savings to finance the capital investment for the solutions. Erie in the US state of Pennsylvania is one of the cities where Quantela’s solutions are already deployed.

"The growth capital from Digital Alpha is a validation of the market opportunities that exist for us,” Quantela founder Sridhar Gadhi said. “While Quantela has been growing exponentially since inception (in 2010), the funding will enable us to expand our global presence faster through a combination of acquisitions and new OaaS projects, creating greater impact for societies."

Quantela is working also with civic bodies in India in cities like Mumbai and Bengaluru to manage their Covid response centres.

The company said it had signed a $20 million project for traffic management in Kerala to enable the state to reduce road fatalities by improving traffic rule enforcement.

In Erie, the city management leveraged an initial investment from Quantela's investment partner Digital Alpha to secure a matching grant that doubled the budget for the project to set up free public WiFi across eight Federal Opportunity Zones. Erie will provide free public WiFi to its citizens while implementing enhanced law enforcement surveillance, smart traffic control, smart parking and energy-efficient street lighting.

Headquartered in the US, with a presence in Europe and Asia, Quantela has over 100 smart city deployments around the world.