ActiveBuildings is helping with its hardware and software solutions to breathe clean and safe air indoors by testing your indoor air. In an interaction with NFAPost Editor-in-Chief N V Vijayakumar, ActiveBuildings Cofounder Abhinav Gupta explains his company journey and the ambition to focus on people as they are the ones bringing productivity into the busines. ActiveBuildings is expecting revenue projection of Rs 150- Rs 200 crore. Excerpts from the interaction.
Q: Can you share your thoughts on the journey of ActiveBuildings so far?
Abhinav Gupta: I visited multiple locations, inclding Singapore, where we learned about the concept of the air quality market, before moving back to India and starting the hardware consultancy with Priyans. Along with it, we started working on the idea of plug and play solution for ever-decreasing indoor air quality in India. In the year 2018, ActiveBuildings started offering solutions with their globally certified sensors in a commercial manner. From 2018 till today, ActiveBuildings served almost 6.5 million sq. feet of space and will serve 7 million sq. feet more just in this financial year.
Q: Talking about the running cost of buildings, employee productivity and efficiency. How does AB look into that aspect?
Abhinav Gupta: ActiveBuildings started out making energy monitors in the year 2015, as people started focusing on the energy efficiency of buildings. Because when you focus too much on electricity bills, people end up making some decisions that are overall bad for the community or group of people living around that space. At times people in the office space try to optimise running costs which can sometimes snowball causing higher expenses on other sides such as loss of productivity, bad health of the employee and so on. Focus on people as they are the ones bringing productivity into the business. Active Buildings also finds ways where improving the running cost is the byproduct, not the focus.
Q: India is witnessing mass development in terms of infrastructure. How is AB looking at opportunities in India at a point where we’re in a transitional phase? (Talking about market size and opportunities)
Abhinav Gupta: India is a critical market in terms of impact, as we have 500 million people living in urban areas. Facing issues such as air quality, Liveable housing and climate impact, the Indian market is opening up and learning the importance of clean air. People want to know what it is in the know that we’re breathing. That is the change that we’ve seen, that’s why we offer AQ testing.
AB is Serving that particular need seamlessly
Q: Products and solutions for B2B and B2C, How AB is looking at them?
Abhinav Gupta: Every space is different and hence, we can’t have a standard solution for every space.
First step: Assess the AQI
Talking about the sensor: Sim card enabled with a 4G sim, can function from anywhere and
can monitor up to 15 different air quality parameters.
Output: Data report.
Second Step: Deploying the solutions,
Talking about Solutions:
● For Humidity, HEPA filters, an In-duct HEPA system(retrofit HEPA)
● UV based solutions in larger spaces
● The solution can even be as simple as opening a window for a period of time
The solution could be just one of these products or a combination of these products within the constraints of the customer.
Q: Is there any platform-centric approach so that more customers can use it in an easier way?
Abhinav Gupta: We do have a platform-centric approach. To see that the platform gives accessible air quality to everyone.
Key parameters we are trying to optimise: Are we giving everyone access to clean air.
Models: Per sq foot costing, we want our end to end customers in achieving their goals within their constraints be either physical constraints or financial constraints.
Adjust the outcomes, depending on the costs and bring access and transparency to the consumers.
Q: Is there an app that the users can avail?
Abhinav Gupta: Yes, ActiveBuildings has an integrated platform, app, dashboard and report depending on the consumer’s preference.
Q: You’re using more consultative technologies, What is the strategy that you’re currently adopting and are you planning to tweak it further?
Abhinav Gupta: So consultancy approach in B2B works, we don’t really offer our own consultancy but it is often mixed with the existing conduits of consultancy like green building consultancy, energy efficiency consultancy, building information modelling consultancy and we enable all these consultants to add air quality into their quiver of services. We enable them to further expand business with their existing clientele and it gives us access to their existing clientele and it gives them an added avenue for earnings.
Q: In many states, we have government organisations looking at these issues, what’s ActiveBuildings’s take on that? How far are we behind compared to our European counterparts?
Abhinav Gupta: India adopting the LEED standard, the Indian government, MOEF department has made it easier for the owner to access the lead certification. Include more critical air quality parameters.
India has created one of the strictest air and environment quality standards, which includes water, light, sound and a big focus on air quality.
American: ASHRAE
Indian: ISHRAE
Which contains guidelines for air quality. The LEED standard has now adopted learnings from the ISHRAE standard.
7 Billion sq. feet in India is real estate, out of which 500-600 million sq. ft are actively doing things to improve the air quality. AB is confident in the way things are moving, adoption will happen.
Q: For MSMEs, do you have modular solutions? Can they use your solutions continuously?
Abhinav Gupta: Yes, focused on MSMEs, that is why Plug and Play is in the DNA of every product that they make. Solutions should be elastic enough to stretch as the real estate stretches, has to be modular and fits well with MSME client that is looking for temporary solutions
Q: Can you tell more about the size of the company, and how you’re carrying out R&D?
Abhinav Gupta: ActiveBuildings has 25 employees in the team, across various verticals. Our primary focus for the next 2-3 years purely on air quality. Integrated with all employees, the company focuses on today’s gains and proud of how the team has been working.
Q: Revenue target for this FY, and 5 year-plan down the line?
Abhinav Gupta: During FY 2021 our revenue was Rs 1 crore. Last fiscal, our revenue almost touched Rs 6 crores. We are expecting to maintain that growth path this year as well. With sales even in the UK, work with Vitalik, looking at 4-6x growth in this FY. In the next 5 years, we would like to diversify our portfolio in offering water flow and quality solutions along with global expansion ambitions. The US, the UK, and Europe are aware that clean air is as important as clean water.
In the next 5 years, ActiveBuildings is expecting revenue projection of Rs 150- Rs 200 crore.
Q: How many countries is ActiveBuildings present in?
Abhinav Gupta: In terms of projects, currently the company is present in three other countries other than India like UK, US and UAE. Organic opportunities as we don’t spend on marketing and advertising there. The fact that ActiveBuildings’s sensors have global certification brings them to ActiveBuildings.
Q: Do you have any distribution channels?
Abhinav Gupta: No distributors as of now in India, we have customer acquisition channels which are consultants or facilities management but no distributors as such.
Q: Has AB applied their solutions to warehouses as well?
Abhinav Gupta: ActiveBuildings works with pharmaceutical warehouses and pharmaceutical distribution centres wherein its critical to maintain a level of air quality which is directly linked to a loss in terms of assets. The pan-India project covers almost 50 facilities, AB continues to work with them and hope to go up to 200 warehouses in the next 1.5 years.
AB is trying to get into other types of warehouses as well. There are companies that own 20-30 million sq feet of warehouses where people are suffering from air quality, humidity, and temperature around the months. We are actively working with them to provide better working conditions for people in the warehouses.
Q: Fundraising and strategy for ActiveBuildings?
Abhinav Gupta: As a startup, actively tried to raise funds but no institutional funding as of now.
Shareholders and the board of directors have put money into the company to gain a certain level of cash positive revenue. No external investors as of now but will be more than happy to partner with investors in the future. Currently looking for partners that share AB’s vision which is bringing accessible air quality to everyone on this planet. The focus is to get the right people on board and everything else can figure itself out.
