Indonesian solar rooftop company Xurya has secured $55m (€51.2m) in a financing round led by Norfund alongside fellow development finance institutions Swedfund and British International Investment (BII), as well as Southeast Asia Clean Energy Facility (SEACEF) and AC Ventures.

The Norfund-managed Climate Investment Fund has made its initial first direct investments in renewable energy in Indonesia by committing $25m to Xurya.  

Swedfund said it has also made a $10m committment to Xurya, marking its first equity investment in the renewable energy sector in Indonesia.

In total, Xurya said it has raised $55m in new funding, taking its total capital raised to date to more than $88m.

Xurya makes clean energy accessible to Indonesian businesses by offering solar power with zero upfront costs, reducing reliance on fossil fuels. The company has so far developed more than 170 solar projects across Indonesia.

Anders Blom, SVP of renewable energy at Norfund, said: “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.”

Maria Håkansson, CEO of Swedfund, said: “This investment in Xurya is an important milestone for Swedfund as we expand our commitment to renewable energy in Southeast Asia. We believe that by supporting pioneering companies like Xurya we can help accelerate the transition to a sustainable energy future.”  

Gunilla Nilsson, investment director, energy and climate at Swedfund, said: “ We are proud to partner with Xurya in our first equity 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 a sustainable impact for people and the environment alike. 

Srini Nagarajan, MD and head of Asia at BII, said:  “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.” 

Mason Wallick, CEO at Clime Capital, which manages SEACEF, said, “We are proud to continue supporting Xurya following our initial investment in 2020 – our first investment after the launch of Clime Capital in the midst of the COVID shut-down.

“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.”

Helen Wong, managing partner at AC Ventures, said: “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.”

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