United States. Daikin Industries, Ltd. announces that it recently underwritten approximately $2 million for a capital increase through third-party allocation by Silicon Valley-based startup Locix, Inc.
Locix employs spatial intelligence solutions that use a combination of indoor positioning technology, advanced artificial intelligence, and Wi-Fi to acquire and analyze location, as well as spatial and visual data, to enable useful information. The data is then used to provide automated decision-making for critical services. These services include asset management in warehouses and distribution factories, operational efficiency based on the movement of workers and occupancy monitoring for the advancement of smart buildings.
As part of a key element of its Fusion 20 strategic management plan (which ends in fiscal 2020), Daikin plans to accelerate its air conditioning solutions business and create new customer value by connecting air conditioning devices to networks and analyzing big data related to air conditioning.
With this assignment, Daikin aims to reduce working hours at installation sites using Locix's highly accurate local positioning technology, Locix LPS. The Locix LPS solution will configure and confirm the positioning information of indoor air conditioning units and automate remote monitoring services that were previously performed manually. In addition, by detecting and analyzing the presence and movement of people and assets in an office building, Daikin hopes to see an office space solutions business emerge.
Daikin explained that he has strived for "collaborative creation" with external entities to support the development of new technologies and innovations that will offer modern and advanced solutions. As part of this effort, in November 2019, the company established the CVC Department in its Technology and Innovation Center, which is an organization to promote collaboration with start-ups.
Recently, Daikin has earmarked approximately $100 million for investments in global start-ups over the next five years (through 2024). The amount allocated to Locix represents Daikin's first investment in a company outside of Japan. Going forward, Daikin will accelerate its open innovation activities while using this type of investment to build strong relationships around the world with new external partners.
