Cardiff-based energy tech firm Sero Technologies has secured a £5.5m equity investment boost to support its growth plans from financial institutions Hodge and Legal & General.
The firm has developed digital tools that design and deliver cost effective low carbon solutions for both new build and existing homes. It works with landlords, mortgage lenders - including Principality Building Society- housebuilders and others to plot a pathway to net zero for their homes,
It has more than 10,000 new build and existing homes within its identified pipeline. The investment from Legal & General and Wales’ only headquartered bank in Hodge’s investment will support Sero’s next growth phase , as well as its aims to support the delivery of net zero financial products with institutional partners.
James Williams, chief executive of Sero said: “The challenge of upgrading existing housing stock is growing as the urgency of solving the climate emergency becomes even greater. Improving the energy efficiency of our homes can provide long term economic benefit and comfort to residents, as well as reducing carbon emissions. This investment therefore is a huge milestone for Sero as we grow and bring new products to market to help Wales and the 海角视频 in its delivery of net zero.
“We set out to find investors that share our vision, and this has been evident from both the Legal & General and Hodge teams from the outset. We look forward to now working together to create strategic opportunities for the business, in particular expanding our presence within new and emerging sectors, such as working with banks and building societies to support the development of green finance products.”
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The split between Hodge and L&G on the £5.5m equity investment has not been disclosed. However, the investment gives them a combined stake in Sero of just under 30%.
David Landen, chief executive at Cardiff-based Hodge, said: “I’m delighted to be able to announce Hodge’s investment in Sero. Our homes are one of the largest contributors to the 海角视频s carbon emissions and all new and existing homes will need to evolve to enable us to meet our 2050 net zero carbon target. Sero seamlessly guides people through understanding their own path to net zero as well as supporting them in the steps required to meet that goal.
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“Apart from both being proud Welsh businesses, our organisations share a common purpose of making lives and society a better place. We can build a strong partnership to help all customers with this vital part of the 海角视频’s carbon transition. The investment is part of our strategy to invest in exciting technology businesses that have close alignment to both our business and our purpose.”
Last year Hodge invested in another high-growth Welsh start-up business in Cardiff-based Yoello.
John Bromley, head of clean energy at Legal & General Capital said: “Housing is a major contributor to carbon emissions, requiring some of the most challenging and immediate overhauls of any sector. We are delighted, therefore, to be investing in a business that will play a major role in putting 海角视频 housing on a pathway to net zero.
"As an energy transition investor, we are aiming to support the scale up of innovative businesses capable of delivering the solutions needed to reduce emissions throughout the economy, and Sero represents another perfect partner for us in this space.
" As one of Cardiff’s largest employers, with a significant stakeholding in the local area through our £450m Central Square development, we are delighted to be working with the Sero team to grow their business, supporting further job creation in the local area and scaling an innovative Wales-based SME.”
Last November Sero was one of a major consortium to win £7m Welsh Government funding to roll out the large scale decarbonisation of homes across Wales. Sero has already built nearly 500 new homes and started retrofitting more over 3,000 homes, spread across more than 30 social landlords.