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Strategic Ventures Impact Insights: May 2023 (Volume 1, Number 5)

SVR Global

01 May 2023

May 2023 (Volume 1, Number 5)

Car Wash Industry Cleans Up with Water Reclamation

The car wash industry is experiencing rapid growth nationwide, with about 100 new car washes being added in the US each month. The industry's growth is driven by profitability, technological advancements, convenience, and market fragmentation. However, one key factor that has contributed to the rapid growth is water reclamation. Water reclamation systems in car washes conserve water, control costs, and align with environmental regulations. These systems allow car washes to use significantly less fresh water compared to home washing, reducing water consumption and sewer hookup costs. In an increasingly environmentally conscious market, car washes with water reclamation technology gain a competitive edge and attract a broader customer base.

Moreover, the integration of water reclamation has become a standard practice in new car wash constructions. Investing in car washes equipped with water reclamation systems not only ensures responsible water usage but also enhances profitability by cutting costs and enhancing the bottom line. As the car wash industry continues to grow, investing in water reclamation technology is crucial for sustainable and successful operations. “Any car wash being built today has these recycling technologies,” Mr. Wulf, CEO of International Carwash Association, said. “That’s just the presumption. That’s how they’re all built.”

In China, Splash Car Wash is leading change for the industry with an innovative, patented water reclamation technology that recycles over 85% of the water that goes through their washes. As Splash grows, the water savings and positive environmental impact will be enormous: with over 320 million cars (and adding approximately 20 million cars a year), the Chinese car market is the world’s largest, and most car washes today are water-wasting hand washes. Not only do these manual car washes use too much water, but they are also inefficient, ineffective, and, unlike Splash, create polluting wastewater because they don’t use environmentally friendly cleaning agents.

Click here to read more.

With over 320 million cars (and growing at a rate of nearly 20 million cars a year), the Chinese car market is the largest in the world – and the car wash market is just beginning to take off. Splash continues to ride this enormous wave and, since the lifting of COVID restrictions in China, they’ve had continued solid growth across their portfolio:

  • Average daily volume increased by 45% in January vs. record Q4 ‘22

  • 141% daily revenue growth between Q4’22 and April ‘23

  • 37% growth in same-store daily volumes between Q4’22 and April ‘23

  • The unmanned nature of Splash’s network is already helping to push gross margins into the 70%’s at many sites

  • Splash’s site-level daily breakeven wash volumes are extremely low and continue to trend lower, at single-digit levels at nearly all locations

In addition, Splash’s April results show a continued acceleration in the exceptional growth the company has achieved over the past 12 months, during which Splash has tripled its revenues. And, as you can see in the summary below, April’s growth has been equally dramatic versus March, their previous best month; versus their 2023 Plan; and versus Q4’22, which at the time was also the company’s best-ever performance:

Splash's April Financials:

vs. March

vs. YTD Plan

vsQ4 '22 Avg.

Net Revenues




Gross Margin








China’s car market has grown so fast that the supporting service sector is still playing catch-up, with labor costs for handwashes rising to the tipping point, confirming that automatic car washes are the future in China. While big enough to spawn its first $1B IPO (YGL, an automatic car wash manufacturer), the car wash sector is still in an early stage of development and growing fast, with enormous potential. As these trends continue on their current trajectories, Splash’s ROI will continue to rise, placing Splash in a unique position to create unrivaled shareholder value as its portfolio continues to grow.

Click here for more information or contact us to set up a call with Rob Shesol, Splash Chairman.

AKOS has developed a pioneering, autonomous technology platform specifically designed for oil well intervention and drilling services. The company delivers its comprehensive suite of services through Technology-as-a-Service (TaaS), offering a range of patented tools, analytical software, and proficient operational staff. AKOS is at the forefront of sustainability, and its exclusive technology significantly minimizes the ecological footprint associated with well services, presenting an exceptional solution tailored for the geothermal industry. Recent company updates include:

  • Signed a 3-year service agreement, $24mm minimum revenue (end-customer ADNOC Offshore)

  • Signed a 2-year service agreement, $5mm minimum revenue (end-customer Saudi Aramco)

  • Executed a 6-month Coiled Tubing Drilling agreement with US geothermal company Bedrock Energy

  • Acquired Precision Assured Manufacturing, previously a key supplier

  • Secured $1mm in equity from Saudi Group, investors with high-level oil & gas connections

  • Wholly owned branch office opened in ABU Dhabi These signed agreements specify rates for AKOS’ technology platform at $4K to $19K per day, and AKOS management expects margins of 80% or higher.

For further information or to set up some time to speak with the AKOS team, please contact Mitchell Hauser.

YouSolar has installed their largest and most powerful PowerBloc to date, with a $264,000 system in an iconic house on California’s Big Sur Coast:

  • YouSolar’s STEP micro-converter enables the PowerBloc’s high-voltage DC architecture and offers panel-level energy production monitoring

  • The company’s PowerBloc’s 100 kW inverters can power all the electric appliances, hot tub, vehicle chargers, and heat pumps

  • The integration of YouSolar's EDISON energy management system with STEP allows for advanced monitoring and optimization. It enables their system to detect underperforming solar panels, predict shading effects, and provide recommendations for panel cleaning, ensuring maximum efficiency

For further information, please contact Mitchell Hauser.

WAVE Drowning Detection System deployments now cover the country, and customers continue to embrace it: “We love our WAVE system so much that we are showing how it works to EVERYONE!”

  • Sold 9 more systems, with 17 new systems sales so far in 2023 ○ 3 YMCAs ○ 3 BGCs (Boys and Girls Club)

  • Closed on two existing customers purchasing a second system from us, and added 3 more for a total of 6 repeat customers

  • Marketing gains continue with incoming inquiries increasing

  • Added two part-time sales assistants for outbound lead generation and looking to hire a full-time Sales Rep And Boys and Girls Clubs of America (BGCA) recently presented BGCA Metro South MA with a safety award for their installation of WAVE.

For further information, please contact Tony Coretto.

This month, we welcomed two new analysts to Strategic Ventures: Justin Mechetti and Farzad Mousavi.

Justin formerly interned with Independence Point Advisors, a purpose-built modern investment bank and strategic advisory firm based in New York. Additionally, he spent two summers working on the preferred banking team at First Republic Bank. Justin holds a B.B.A in Finance from Loyola University Maryland and will be attending the Owen Graduate School of Management where he will be pursuing a Master of Science in Finance degree at Vanderbilt University next fall.

Farzad previously interned at UCCRN Colombia University, a think tank and research hub focusing on climate resiliency and sustainability to provide city-focused assessment and solution strategies. Farzad worked on the Circular Economies team as a researcher for the ARC3.3 Assessment report. Farzad currently is an undergraduate student at CUNY Hunter College, pursuing a B.A. in Economics with a minor in Computer Science and Business. He is a Thomas Hunter Fellow, Cooperman Fellow, CUNY Climate Scholar, INROADS Scholar, and an Executive Board Member of Hunter’s Investment Club where he executes logistics on professionally geared events focused on career advancement.

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