Measurabl, a software and service provider focused on ESG data and reporting, acquired energy management software provider WegoWise.
Decarbonization is becoming a core business issue in commercial real estate. Measurabl's Hatch Data acquisition was all about expansion along the decarbonization journey. The ability to zoom into each site and get down to the details: think specific actions, hourly data, etc. WegoWise surely has some features that can help with that horizontal expansion, but there is more to the acquisition - First and foremost, it's about buying customers. WegoWise had 1.6% of the US multifamily apartment market at the time of acquisition. Virtually all of those apartment buildings are additive for Measurabl.
The WegoWise product also includes functionality designed for renters and single family home owners, negating the need to build those features from scratch as Measurabl expands into these new territories.
Institutional money is moving into single family homes. There's no more preface of residential or commercial—it's just real estate. Measurabl must be a genuine real estate platform with no limits.
Second, this is about vertical integration. Before the acquisition, Measurabl used Urjanet to acquire utility bill data. WegoWise has that functionality built-in, meaning Measurabl can bring automated data acquisition in house, control their customer's most important data source, and increase margins by cutting Urjanet out of the stack.
This second strategic driver is especially important when you consider Measurabl's new data platform offering. Driving down margins theoretically means more API calls and drives economies of scale that will make this offering more difficult to compete with.
Some interesting movements in this decarbonisation software space include:
Large capital raises are fueling acquisitions and consolidation in decarbonization software. Measurabl buying Hatch and WegoWise. Deepki buying Fabriq. Arcadia buying Urjanet.
Consolidation is coming in the form of horizontal integration of adjacent use cases, vertical integration of infrastructure layers, and buying customers. Deepki buying Fabriq's UK customers and site-level functionality. Arcadia buying Urjanet's infrastructure and commercial customer based. Measurabl buying WegoWise's infrastructure and residential customers. Sparkfund buying one of their implementers.
Decarbonization data is now a product and there are now several competing decarb APIs, where platform providers are combining source utility data with data from other third party sources to support all kinds of stakeholders and all sorts of use cases.
It's a land grab and a data grab. It's accelerating towards a destination where there are only a few big players.
Comments