Pipe dreams: VAPAR secures $5 million for its AI sewerage solution

Australian deep-tech startup VAPAR has successfully raised $5 million to fuel its expansion into the North American market. This move comes as a strategic step to enhance the company’s global footprint, following its success in Australia, New Zealand and the United Kingdom.

Co-founded in 2018 by CEO Amanda Siqueira and CTO Michelle Aguilar, VAPAR specialises in water and sewerage pipeline maintenance software. While AI has become the catch-all phrase of the last 12 months — with many businesses attempting to capitalise on its popularity with investors and customers alike — VAPAR has been utilsing AI solutions since being founded.

The pair were inspired by Siqueira’s firsthand experience as an engineering intern. Tasked with the laborious and error-prone job of manually reviewing sewer inspection videos, Siqueira identified a clear need for a more efficient solution. This led to the development of VAPAR’s AI-driven technology, which harnesses AI and machine learning to find faults in sewerage and stormwater pipes.

The latest funding round was led by PureTerra Ventures, a Dutch water technology specialist known for its commitment to sustainable solutions in the water sector. It was joined by Autodesk, Halma Ventures, Access Capital Ventures and Metagrove Ventures. Sprint Ventures, which participated in VAPAR’s $2.5 million seed round back in 2022, also contributed.

A significant portion of the investment is earmarked for VAPAR’s expansion across North America. The company plans to leverage this opportunity to address the challenges posed by ageing infrastructure in the region. With over 3 billion feet of sewer pipes inspected globally each year, VAPAR says the need for efficient and accurate maintenance solutions is more critical than ever.

“Billions are spent every year by global water utilities on fixing their pipes, over half of which is spent in North America. Despite the massive investment, there isn’t enough data and dollars available — utilities must commit to doing things differently,” Siqueira said to SmartCompany.

“Artificial intelligence can unlock unprecedented efficiencies. Our vision is to create a world where critical infrastructure investment meets the needs of our communities.”

To date, water authorities in the United Kingdom, Australia, and New Zealand have made over 20,000 pipe investment decisions based on the company’s insights. According to VAPAR, it has also doubled its revenue growth and product usage annually for the past four years.

“The face of AI is changing rapidly, and we’re proud to be pioneering this deep learning technology in such an impactful way for the water industry. With our increasing customer base, we now support a wide range of industry standards, time zones and languages,” Aguilar said.

“Investing funds to double our team, add new verticals and start our North American office will ramp the number of customers that can benefit from this technology.”

In 2023, VAPAR’s technology facilitated the review of nearly 6 million feet of underground pipes. The company has also begun collaborations with North American utilities, including the New York City Department of Environmental Protection.

Autodesk’s investment in VAPAR underscores the growing importance of AI in enhancing infrastructure maintenance and repair. Amy Bunszel, EVP of Architecture, Engineering, and Construction Design Solutions at Autodesk, highlighted AI’s role in enabling more effective and efficient teams and uncovering new solutions through data-powered insights.

“VAPAR’s performance is standout in the evolving water management technology space. Showcasing their strong customer advocacy, a quick-to-adopt product and an impact-driven team made our decision an easy one. This investment will not only expand VAPAR’s customer reach but also substantially reduce pipe failures, which reflects our shared commitment to sustainable water infrastructure development globally.”