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Hulo, a Netherlands-based water technology company developing AI tools to identify leaks in water networks, has raised €2.3 million in seed funding to support international growth.

The round was led by VP Capital and Lumo Labs, with participation from Vanagon, Rabobank, the FOM and the Netherlands Enabling Water Technology fund (NEW).

Hulo provides a software-as-a-service (SaaS) platform that uses pressure and flow data from existing utility systems to detect, localise and prioritise leaks and other anomalies. The system combines AI and physics-based models to analyse how each network behaves dynamically, and can integrate into existing utility operations without additional hardware or the need for district metered areas (DMAs).

The funding will enable HULO to accelerate deployments in Europe, the UK and Latin America, and expand its capabilities in AI, network analytics, cybersecurity and customer success.

Traditional leak detection methods often depend on physical inspections or hydraulic modelling. Hulo's approach instead draws directly from real-time operational data, learning from network flow and pressure changes to surface actionable insights. The company’s hardware-agnostic design allows utilities to adopt the technology without new infrastructure investments.

Hulo was spun out of Wetsus, the European Centre of Excellence for Sustainable Water Technology in Leeuwarden, and has grown alongside the Netherlands’ strong water management ecosystem.

Erica van Eeghen, senior manager ventures of VP Capital, said: "Water scarcity is emerging as one of the world's most pressing environmental constraints, with around 30% of treated water lost globally, often through ageing water network infrastructure".

"Hulo's ability to detect leaks early, using advanced AI rather than expensive sensors, is exactly the kind of lean, scalable innovation that fits our investment lens. This is a domain where measurable environmental impact and efficiency go hand in hand. We're glad to join forces with such thoughtful co-investors and a technically sharp founding team."

Robbert Lodewijks, co-founder of Hulo, added: "The future of water infrastructure requires that digital innovation integrates with the operational reality of today's networks. We're building solutions that are both powerful and practical – enabling water utilities to take action without overhauling their systems."