Hong Kong proptech firm Carnot secures $800k from 500 Startups, others

Hong Kong-based proptech company Carnot Innovations has secured US$800,000 in seed funding from 500 Startups’ Southeast Asia-focused fund 500 Durians, MTZ holdings, and Entrepreneur First.

Hong Kong Island / Photo credit: leungchopan / 123RF

The new investment follows a HK$450,000 (US$57,500) pre-seed raise earlier this year from Entrepreneur First, which helped the startup launch its business and set up a headquarters in Hong Kong.

Carnot provides an AI-powered analytics software for commercial buildings. It uses machine learning algorithms to predict failures in heating, ventilation, and air conditioning (HVAC) equipment.

It plans to use the new funds to expand its solution across Asia Pacific while building a strong in-house team, the startup said in a statement. Carnot said it is now expanding “rapidly” to Singapore and Thailand as it receives support from government-backed Hong Kong Science and Technology Park.

According to a statement, the company has successfully deployed its solution in major infrastructure and commercial facilities in Hong Kong and established partnerships with engineering contractors to help it scale its business.

“Existing practices for maintenance and control of HVAC systems in commercial buildings are inefficient and outdated,” said Carnot co-founder and CEO Ashish Justin. “Each commercial building on average loses over US$350,000 of operational revenue every year in energy and maintenance costs.”

Carnot claims its AI solution generates over 30% savings in energy costs.

The startup was established by Justin and Chris Choy, chief technology officer of Carnot. Justin is a certified energy manager and holds a master’s degree in automation from Nanyang Technological University. Choy, on the other hand, is a data scientist and full-stack developer who previously worked at Germany-based BASF.

Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.83.