HULO Raises €2.3mn For AI Leak Detection

Dutch start-up expands as utilities seek to curb water losses and modernise ageing networks

16 Feb 2026

Artificial intelligence is gaining ground in the global water sector as utilities seek to reduce losses and modernise ageing infrastructure. HULO, a Dutch start-up, has secured €2.3mn in seed funding to expand its AI-based leak detection platform across Europe, the UK and Latin America.

The funding round was led by VP Capital and LUMO Labs, with support from Rabobank and regional investors. The company plans to use the proceeds to scale operations and enter new markets where utilities face mounting pressure to cut so-called non-revenue water, treated water that is lost through leaks, theft or metering errors before it reaches customers.

Utilities are operating in a tougher environment. Climate change is increasing the frequency of droughts in some regions, while infrastructure in many European cities dates back decades. At the same time, regulators and customers are demanding higher efficiency and improved environmental performance. Reducing distribution losses has become a strategic priority for operators concerned about both costs and water security.

HULO’s platform analyses pressure and flow data that utilities already collect through existing sensors. By applying artificial intelligence to identify anomalies in these data streams, the system aims to detect leaks at an early stage. The approach reduces the need for extensive hardware upgrades, lowering the cost and complexity of digital adoption.

The investment reflects broader interest in data-driven water management. Across the sector, utilities are turning to advanced analytics to improve network visibility and anticipate failures before they occur. Investors have increasingly backed software-led solutions that promise measurable efficiency gains without large capital expenditure.

Adoption, however, presents challenges. Utilities must ensure that AI systems are transparent, reliable and compatible with legacy assets. Budget constraints and regulatory oversight can slow deployment decisions, particularly in publicly owned networks.

The latest funding round suggests continued confidence in digital tools to address structural inefficiencies in water distribution. As climate risks intensify and infrastructure continues to age, utilities are expected to seek scalable technologies that improve resilience and reduce waste.