Hydraloop, which makes a device that collects and recycles water from showers, baths and washing machines, will use the money for an international rollout.
Dutch impact investors Invest-NL and NOM joined proptech investor Amavi Capital in committing a total of €10.5m for Hydraloop, a company in the production and sale of decentralised residential water recycling systems.
The €10.5m investment formed part of a Series-B funding round of €13.5m, aimed at boosting Hydraloop’s research and development and sales engineering capabilities for global expansion.
“We are pleased to have Invest-NL as a new shareholder,” said Arthur Valkieser, co-founder and chief executive officer of Hydraloop. “They are true impact investors, and their shareholding strengthens our mission. Together, we can improve the world with our sustainable water technology.”
Water scarcity is changing the way water is being managed, according to Valkieser. For example, national and local governments from Spain, the Netherlands to England and the US state of Florida are implementing tax breaks or granting building permits aimed at boosting the installation of greywater recycling systems.
Global market size
When asked by Impact Investor what the global market for its water recycling products may be worth, a Hydraloop spokeswoman compared it to the global market for air conditioning units or other white good products. “We foresee that in 10 to 15 years, new builds around the world will have a water recycler,” she said.
The size of the global market for air conditioners is estimated to be worth just over $201bn this year, according to a market research report by Mordor Intelligence.
Hydraloop currently has 130 partners in 35 countries, where it has installed water recyclers in private homes, hotels, sports facilities, student housing, and other high water-usage buildings.
Through its patents, Hydraloop will allow other companies to build their water recyclers. In addition, it will also build assembly lines in to 10 to 15 regions.
45% saving
Hydraloop’s recycling system, which doesn’t use filters or chemicals, allows users to save up to 45% on drinking and wastewater. Water recycling technology is increasingly regarded as a key solution to the global water challenge, aligning with the United Nations Sustainable Development Goal 6 (ensure access to water and sanitation for all).
In 2022, 2.2 billion people had no access to safely managed drinking water, while 3.5 billion people lacked safely managed sanitation, according to the United Nations.
“In our pursuit of a sustainable future, we recognise the importance of innovative solutions for the global water crisis,” said Lars Groenveld, senior investment manager at Invest-NL.
“The investment in Hydraloop represents more than just financial support; it is a commitment to preserving our most precious resource – water. Hydraloop’s revolutionary technology offers a tangible solution for more sustainable water usage, and we are proud to contribute to this,” Groeneveld said.
In interview with Impact Investor earlier this month, Leo Holwerda, director capital, at Invest-NL, said the Netherlands’ main national promotional institution aims to invest around €250m this year, while it has around €1bn of investments in the pipeline.
