Indonesia’s premier renewable energy company, Xurya, has secured a substantial new investment of US$55 million to enhance its operations and drive the nation’s renewable energy sector forward. The funding round was led by the Norwegian Climate Investment Fund, managed by Norfund, with significant contributions from prominent global institutions, including Swedfund and British International Investment.
Founded in 2018, Xurya has set itself apart as the first company in Indonesia to offer rooftop solar installations without upfront costs. This innovative approach has significantly accelerated solar adoption across the country, particularly within the commercial and industrial sectors. Xurya’s integration of Internet of Things (IoT) technology and machine learning in solar energy management has further cemented its position as a leader in the renewable energy sector.
With the latest investment, Xurya’s total funding has now surpassed US$90 million. This round is particularly noteworthy as it marks the first direct investments from the Norwegian Climate Investment Fund and Swedfund, Sweden’s Development Finance Institution, into Indonesia’s renewable energy market. Additionally, this investment represents the first equity investment by British International Investment in Indonesia under its current 2022-2026 strategy.
Xurya’s Funding Milestones
| Funding Round | Amount Raised (USD) | Major Investors | Year |
|---|---|---|---|
| Seed Round | 5 million | Local Investors | 2018 |
| Series A | 20 million | AC Ventures | 2020 |
| Series B | 55 million | Norfund, Swedfund, British International Investment | 2024 |
This significant influx of capital is set to empower Xurya to further refine its technological offerings and expand its market presence, with a vision to achieve global competitiveness. Eka Himawan, Managing Director at Xurya, expressed confidence in the company’s future: “With support from these world-class investors, we are not only going to continue producing innovations that will support a sustainable national energy transition, but we also aim to transform into a world-class company in the next few years.”
Indonesia, being the largest archipelago globally, faces unique challenges and opportunities regarding climate change. Xurya’s innovative energy solutions are poised to make a significant impact. The Indonesian government has set an ambitious target of achieving net-zero emissions by 2060, with a significant emphasis on increasing the share of renewable energy sources, such as solar power, in the national energy mix.
The funding partners have underscored their commitment to supporting Indonesia’s transition to sustainable energy. Anders Blom, Senior Vice President of Renewable Energy at Norfund, remarked, “Norfund is thrilled to lead this investment round in Xurya, mobilising private and public capital into a company that is making vital contributions to the energy transition in Indonesia. The investment is a perfect fit with the mandate of the Climate Investment Fund of contributing to avoiding greenhouse gas emissions by investing in renewable energy in emerging markets.”
Gunilla Nilsson, Investment Director of Energy and Climate at Swedfund, highlighted the shared mission with Xurya: “We are proud to partner with Xurya on our first direct investment in Indonesia’s renewable energy sector. With a shared mission to combat climate change in a high emitting country, and a focus on measurable impact metrics, we look forward to actively contributing to sustainable impact for people and the environment alike.”
Mason Wallick, CEO at Clime Capital, noted, “We are proud to continue supporting Xurya following our initial investment in 2020 – our first investment after the launch of Clime Capital amid the COVID shutdown. This follow-on investment demonstrates the effectiveness of Clime Capital’s early-stage risk capital model in scaling promising clean energy companies to accelerate their growth.”
Srini Nagarajan, Managing Director and Head of Asia at British International Investment, commented, “We are delighted to be supporting a company like Xurya, which is at the forefront of driving innovation in the commercial and industrial solar energy market in Indonesia. As the UK’s DFI, this investment reflects our commitment to sustainable development to support and strengthen our partnership with Indonesia to achieve a greener and more resilient future, especially as we celebrate the 75th anniversary of diplomatic relations between the UK and Indonesia this year.”
Helen Wong, Managing Partner at AC Ventures, remarked, “The urgency to do something about climate change is clear, especially in Southeast Asia. Similarly, the investment opportunity has never been greater. We are proud to continue supporting Xurya as the largest player in Indonesia’s commercial and industrial solar energy market.”
Xurya’s innovative solar rental model has facilitated over 170 solar projects across Indonesia, effectively reducing carbon emissions by 152,000 tons annually and creating more than 1,600 green jobs. With this fresh injection of capital, the company aims to further mitigate up to 370,000 tons of CO2 emissions each year. Xurya’s commitment to sustainability is further underscored by its active participation in the Indonesian Solar Energy Association and its role as a technical trainer and expert in numerous solar energy training programs.
- Investment Amount: US$55 million
- Lead Investor: Norwegian Climate Investment Fund, managed by Norfund
- Additional Investors: Swedfund, British International Investment
- Total Funding to Date: Over US$90 million
- Target Emission Reduction: Up to 370,000 tons of CO2 annually
- Job Creation: Over 1,600 green jobs
Eka Himawan added, “We are very grateful for the trust that has been given by the investors to us. The Indonesian Government’s target to achieve net-zero emissions by 2060 is very ambitious, but we are certain that with gotong-royong (spirit of collaboration), we are going to achieve it. Xurya is ready to work with all stakeholders towards achieving this goal.”
This strategic investment positions Xurya not only as a leader in Indonesia’s renewable energy sector but also as a potential global competitor in the renewable energy market. With the combined efforts of Xurya and its global partners, Indonesia is poised to make significant strides towards a sustainable energy future, benefiting both the environment and the economy.
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