New Energy Nexus Injects Additional Investment of IDR 484 Billion into Three Climate Tech Startups

New Energy Nexus (NEX) Ventures announced additional funding in three startups climatetech Indonesia with a total accumulation of $31 million (around IDR 484,7 billion). These three startups include SolarKita, Swap Energy, and Synergy Efficiency Solutions.

"Despite the decline in investment in the sector climatetech "globally last year, these three startups have demonstrated their resilience by closing new funding," said NEX Ventures Managing Director Yeni Tjiunardi in his official statement.

A glance at the three portfolios:

1. SolarKita develops solar energy solutions for residential areas, enabling them to build a market base for solar panel users in Indonesia.
2. Swap Energy develops battery swap technology and allows motorists to replace dead batteries. Swap Energy is recorded as having more than 1.300 battery exchange points.
3. Synergy Efficiency Solutions (SES) offers energy efficiency in Southeast Asia through various solutions, such as design, financing and installation.

NEX Ventures via Indonesian managed fund 1 Fund has injected funding into 7 companies climatetech and allocated 4 follow-on investments since 2020. In addition, Indonesia 1 Fund has also made a joint investment with Schneider Electric Energy Access Asia (SEEAA) in SolarKita and with the Southeast Asia Clean Energy Facility (SEACEF) at SES.

According to the NEX report, the portfolio has performed well and managed to attract a total of $70 million from various investors since being injected with this managed fund. It claims that the entire Indonesia 1 Fund portfolio has reduced more than 165 thousand tons of carbon emissions, or the equivalent of planting eight million trees.

One of the portfolios states that the funding will be used to strengthen the company's business fundamentals, improve product quality, and expand its network of installations and sales partners in Indonesia.

"The funding we received from Indonesia 1 fund and SEEAA has significantly increased our penetration in residential areas. Milestone "This marks SolarKita's first step in its expansion plan to reach 18MWp equivalent to solar PV installations in 6000 homes in the next three years," said SolarKita Founder & CEO Amarangga Lubis.

Global and domestic trends

PwC in "State of Climate Tech 2023" reported funding climatetech from VC and private equity firms saw a decline of up to 40% last year. Factors of economic uncertainty and geopolitical conflict are said to reduce investors' confidence in investing.

Meanwhile, this report was created based on the results of analysis of more than 8000 startups climatetech worldwide and more than 32.000 funding transactions with a total value of $490 billion.

Meanwhile, a report has been prepared DSInnovate past "Indonesia's Startup Handbook: Funding Updates (Q1-Q3 2023)" highlights funding trends in the green sector, especially in electric vehicle startups. For three quarters in 2023, EVs will be the sector that receives the second highest funding in Indonesia.

Three startups developing the EV ecosystem, namely Swap Energy, Alva, and Charged, have received funding in the last few years. Meanwhile, VCs and investment companies that are actively channeling capital into the EV sector include New Energy Nexus Indonesia, Eas Ventures, AC Ventures, and Kejora-SBI Orbit Fund.