Why Investors Are Betting on Digital Leak Detection

Fresh funding for HULO highlights growing investor faith in software-driven leak detection as European utilities race to curb losses and modernize fast

22 Oct 2025

Digital investment is accelerating Europe’s efforts to reduce water loss, as utilities turn to software-led tools to manage ageing networks and tighter budgets. A €2.3mn funding round for Dutch leak detection specialist HULO is adding momentum to the shift, underscoring growing investor confidence in data-driven approaches to a long-standing problem.

Completed in October, the deal reflects a broader change in Europe’s leak detection and maintenance market. Rather than financing large-scale hardware rollouts, investors are increasingly backing software that analyses data utilities already collect, such as pressure and flow readings. The aim is to identify leaks across entire networks more quickly and at lower cost, at a time when utilities face tougher regulatory scrutiny and limited capital spending.

HULO’s platform uses existing operational data to flag areas where leaks are most likely to be occurring. Utilities can then target inspections and repairs sooner, without waiting for new sensors or major infrastructure upgrades. Investors say this approach aligns with operational realities across the sector, where companies are under pressure to show measurable reductions in water loss.

“This is about speed and scale,” one investor said publicly. “Digital tools let utilities act sooner and make better decisions using information they already have.” Another backer pointed to climate stress and rising water scarcity as factors drawing investors seeking both environmental and financial returns.

The new funding will support HULO’s expansion beyond the Netherlands into other European markets and the UK, while also laying early groundwork for entry into regions such as Latin America. The company said it would also invest in improving its platform and strengthening data security.

The timing is significant. Many European water networks lose about 20 per cent of treated water before it reaches customers, while global non-revenue water losses are often estimated closer to 30 per cent, though figures vary widely by region. Regulators and policymakers are increasingly signalling that such losses are no longer acceptable.

The shift towards software-led detection is likely to have wider effects. Traditional providers may need to adapt as digital platforms reset expectations around speed, cost and network coverage. Integration challenges remain, but the direction of travel is clear: leak detection is becoming a central part of modern water management, and a growing focus for investment.