Nanoprecise closes Series C to predict industrial equipment failures with AI

Edmonton-based Nanoprecise Sci Corp has secured $36 million USD ($52 million CAD) in equity and debt financing to fuel its geographic expansion and product development plans.

“With the world moving towards AI and automation, there is no better time to prove that [energy-centred maintenance] is the next big thing in manufacturing.”

The predictive maintenance technology startup helps clients in industries like mining, oil, and gas anticipate equipment failure and reduce downtime using artificial intelligence (AI).

Nanoprecise’s Series C round closed earlier this month. The equity portion was co-led by Vancouver’s Yaletown Partners and BDC Capital’s Industrial Innovation Venture Fund, with support from fellow new investor BMO Capital Partners and existing backer Export Development Canada (EDC). CIBC Innovation Banking provided a credit facility. 

The company plans to use this capital to enhance its tech, invest in research and development, and support its expansion into Southeast Asia, Latin America, Africa, and Australia. Nanoprecise plans to add 50 employees to its 127-person team, with hires in AI, human resources, customer success, and operations to support these goals.

Nanoprecise founder and CEO Sunil Vedula told BetaKit that the financing included $2 million USD in secondary and $36 million in primary capital—the latter of which consisted of a combination of equity in debt that he declined to disclose. This round brings Nanoprecise’s total funding to $53 million USD, a figure that also includes $10 million USD in Series B financing led by EDC from January 2023.

Vedula claimed that Nanoprecise’s Series C was an up round that valued the company at more than $100 million, but declined to share the company’s exact valuation.

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Founded in 2017 by Vedula, a mechanical engineer, Nanoprecise has developed AI-powered predictive maintenance and condition monitoring software that leverages internet-connected sensors to gauge the health and performance of industrial equipment used for manufacturing in real time.

Through its tech, Nanoprecise aims to help predict failures, reduce unplanned downtime, extend equipment life, and ensure maintenance takes place in an energy-efficient fashion. 

“With the world moving towards AI and automation, there is no better time to prove that [energy-centred maintenance] is the next big thing in manufacturing,” Vedula said.

Nanoprecise is targeting clients in energy-intensive and asset-heavy industries ranging from metals to mining, cement, chemicals, oil and gas, pharmaceuticals, food and beverage, pulp and paper, and transportation, and has amassed a customer base that includes Fortune 1000+ enterprises and mid-sized manufacturers.

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The startup has seen growing adoption from companies looking to meet net-zero carbon emissions goals and digitize their maintenance practices without overhauling their existing infrastructure. It serves customers in North America, Europe, the Middle East, and Asia across a range of industrial facilities, from remote mining operations to large-scale manufacturing plants. 

According to Vedula, Nanoprecise grew its annual recurring revenue (ARR) to $10 million in 2024, up 114 percent year-over-year, thanks in part to “a clear shift in industry and priorities” and expanded relationships with existing customers.

Nanoprecise also saw a churn of less than five percent, improved its gross profit, saw its customer acquisition costs fall, and posted net revenue retention of more than 115 percent. “These metrics reflect not only rapid growth, but a scalable and efficient business model with sticky customers and strong unit economics,” Vedula said, noting that he expects Nanoprecise to hit $20 million in ARR in 2025.

“Nanoprecise is not just talking about efficiency to the customers but is also displaying the same discipline in its finances, as it has achieved maximum revenue per dollar of investor funds raised in its class,” Yaletown co-founder and partner Hans Knapp said in a statement. 

Feature image courtesy Unsplash. Photo by Dominik Vanyi.