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Xurya, an Indonesian solar energy firm, wants to raise further financing

According to the co-founder, investor interest in climate tech startups is increasing.

In Jakarta According to a top executive, Indonesia’s Xurya, which creates rooftop solar panels for businesses and industries and anticipates increased demand for solar panels this year, plans to finish a fresh funding round before the end of the year.

“We always raise money because we need to support new projects with brand-new funding. According to co-founder and managing director of Xurya Eka Himawan, “we aim to close another fundraising round this year that would be bigger than our previous one.

Mitsui & Co. and Surya Semesta Internusa provided the company with $11.5 million in the second installment of its Series A investment in October of last year. It had raised $21.5 million in the first tranche in December 2021 led by East Ventures (Growth Fund). Consequently, the company’s total Series A funding stands at $33 million.

Saratoga Investama Sedaya, Schneider Electric, New Energy Nexus, Crevisse, Endeavour Indonesia, and Tokopedia are a few additional investors in Xurya.

Investor interest in firms that deal with climate technology is soaring as awareness of climate action and the significance of renewable energy rises, according to Himawan. The introduction of new impact- and climate-focused funds serves as additional evidence for this.

But market education is important not just for the general public or potential customers, but also for investors.

“Nobody knew the importance or advantages of solar-based renewable energy when we first began seeking money in 2019. But now, investors are showing a lot more interest because practically all VC firms have impact or ESG mandates, according to Himawan. We need to provide a lot of knowledge because many investors are unfamiliar with the industry and its business model because they are used to investing in technology. We represent the first investment in this industry for certain investors.

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Himawan, an electrical engineer by training, and co-founder and chief technology officer Edwin Widjonarko established Xurya in 2018 after seeing Indonesia was ready and had a chance to adopt solar energy.

“In 2018, we observed that the cost of capital [for solar panels] in Indonesia had equaled the investment value of solar technology. Despite rising electricity costs, solar panel manufacture and installation are becoming more accessible because of ongoing technological advancements. Therefore, it was appropriate to begin [Xurya],” Himawan continued.

From feasibility studies and design consultancy to equipment procurement, building, permits, community management, and maintenance, the company provides end-to-end services for solar panel installations. Xurya concentrates on the business and industrial sectors.

Indonesia has a tremendous potential for solar energy due to its plentiful sunshine, as well as its vast land area and water bodies. According to a study by the Institute for Essential Services Reform, Indonesia will deep decarbonize in 2060 or even earlier in 2050 thanks in large part to solar energy.

According to the analysis from Mordor Intelligence, the solar energy market is also anticipated to increase at a compound annual growth rate of almost 10% between 2019 and 2028.

However, a widespread misperception regarding solar energy is that it is expensive and challenging to maintain. In order to solve this problem, Xurya offers a “no investment” programme in which the firm leases out its solar panels and customers pay according to the performance or amount of electricity the panels generate for them.

“Using sustainable solar energy actually reduces the cost of electricity for businesses. Customers who are prepared to invest by buying the solar panel up front will see a return on their money in seven to eight years. If not, they can enter into a contract for 10 to 20 years that will guarantee them lower electricity prices from solar energy. Clients find the second scheme to be more alluring, according to Himawan.

More than 122 major corporations, including the consumer goods maker Unicharm, the hotel chain Hotel Santika, the real estate and development company Ciputra, the technology company Traveloka, and many others, have employed Xurya’s services to date. More than 120 million kilowatt-hours of renewable energy have been generated through its rooftop solar projects. Himawan noted that every project the business has undertaken has been profitable.

Himawan predicts that demand for solar rooftop projects will keep rising in the future, particularly given that Indonesia will host general elections next year and that electricity prices typically climb following elections.

“We are quite upbeat, and we’ll keep enhancing our resources—capital, personnel, and technology—to meet the soaring demand. In addition, we intend to broaden the scope of the renewable energy services we provide beyond solar energy. We are also open to collaborations with other businesses operating in this field, Himawan stated.

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