Energy tech venture Sero has secured another multi-million pound equity boost to support its growth plans. The Cardiff-based start-up has closed a follow-up round of £6m from the only bank registered in Wales, Hodge, and Legal & General Capital.
Last year the two jointly invested £5.5m in the business. Their latest equity investment takes their combined stake in Sero to 44% (22% each).
Sero’s technology, combined with construction expertise, focuses on affordable outcomes for residents and property owners, currently mainly in the social housing sector. It is helping the decarbonisation of existing homes through retrofitting, as well as the construction of new energy efficient homes such as the Aspen Grove development in Cardiff and Parc Eirin in Tonyrefail.
It is currently working with one of the largest housing associations in England, Sovereign, to decarbonise 1,000 homes, alongside its work developing and advising on building net zero homes across Wales.
James Williams, chief executive officer at Sero said: “I’m delighted that Sero has secured further investment from Hodge and Legal & General Capital, following on from the initial investment secured at Series A in December 2021. This is a great vote of confidence in the Sero team, our technology and our ambition to rapidly increase the scale of net zero homes in the UK.
“The cost-of-living crisis has overlaid further urgency in addressing climate change, energy efficiency and affordability in some of the poorest performing homes in Europe, leaving us exposed to increasing fossil fuel prices. So, this investment brings with it the opportunity to invest in our technology and increase the scale of delivery in social housing retrofit and collaboration with financial institutions in addressing the funding gap.”
Hodge chief executive, David, Landen, said:“In the 16 months since we made our first investment in Sero we have seen the company go from strength to strength, working with more housing associations in England and also extending its reach to a point where it’s now advising construction companies about how to build more sustainable homes.
“Its ethos is to reduce carbon emissions of peoples’ homes, as well as supporting new developments to be as carbon efficient as possible, all while helping residents live affordably and sustainably. These values are a perfect fit for Hodge, as our mission is to help our customers in the moments that matter, and the climate and cost of living crisis are just that – pivotal moments which we have to work together to reverse and support one another with.”
Managing director of clean energy at LGC, John Bromley, said: “I’m delighted that LGC has increased its investment in Sero Technologies—they are a great example of how new and growing businesses can power the UK’s shift to cleaner energy. Their work supporting the transition to net zero across the residential housing sector is well-aligned with our ‘inclusive capitalism’ ethos of investing to create social, environmental, and economic benefits across the country.
“Residential retrofitting represents a significant market opportunity both to achieve the UK’s legally mandated target of net zero by 2050, and reduce household exposure to volatile global fossil fuel markets: almost every home in the UK will need to be improved or retrofitted with some combination of enhanced energy efficiency and low carbon heating. We look forward to working with Sero as they accelerate their growth in order to address the climate crisis.”
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