Sero is looking to scale up with a contracted pipeline to improve the energy efficiency of a further 10,000 homes
Sero founders left to right Andy Sutton and James Williams.
The Cardiff Capital Region’s £50m equity fund has made its latest investment backing the growth plans of energy innovation venture Sero.
The Cardiff-based firms works with local councils and housing associations to provide energy services and retrofit in up to 2,500 homes, with a further contracted pipeline of up to 10,000 homes. It operates across South Wales, the south west and southern England and London.
The company blends retrofit and energy expertise with proprietary technology that spans strategy support to ongoing energy management services.
The region, through its Innovation Investment Capital (IIC) fund, which is managed by Capricorn Fund Managers, has not disclosed the value of its investment into Sero. Around half of the £50m has already been invested in firms across the region, including Mazuma, Space Forge and Transcend Packaging. A sixth deal, in a co-investment, will be confirmed shortly.
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The funding round is the latest for Sero and builds on a £6m investment from Cardiff-based bank Hodge and Legal & General Capital in 2023.
James Williams, Sero chief executive, said: “IIC’s investment is a vote of confidence in Sero’s vision and technology and was driven by a clear alignment between CCR and Sero, which both share the aim of using innovative solutions to drive down bills, cut carbon emissions and deliver better, more comfortable homes for residents. With this support, we will accelerate deployment of our energy-efficiency solutions, deepen partnerships with housing providers and unlock new pathways for sustainable growth.”
Kellie Beirne, chief executive of the Cardiff Capital Region – a statutory body covering the ten local authorities of south-east Wales said: “Supporting Sero reflects strategic backing of our local companies that leverage innovation to deliver strong commercial and societal outcomes.
“Sero’s growth trajectory, rooted in technology and its contribution to improving the energy efficiency of housing stock, makes it a compelling story. We are proud to back a business that not only drives economic value but also supports meaningful climate action and community benefit in our region.”
Lynda Stoelker, Capricorn Fund Managers’ chief operating officer and chair of the IIC investment committee, added: Sero fits well within the IIC’s investment philosophy, combining sustainable technology, scalable growth potential and a mission-centric business model. We see this investment as a strong strategic and financial fit that contributes to regional development and decarbonisation objectives.”
Professional advisory firm PwC advises the fund with investment research and sourcing. Rob Asplin, PwC partner, said: “Sero was recognised as an investment opportunity for the fund due to its blend of technology-enabled solutions, strong leadership and robust market opportunity within the energy efficiency and retrofit sector. These qualities align with the fund’s investment criteria and its mandate to help scale regional innovators with the potential to deliver measurable impact.”
Hugh James provided legal advise to the fund on the deal. Gerallt Jones, partner and head of corporate/commercial for the Cardiff headquartered firm, said; ““The IIC investment in Sero highlights the strong investor confidence in innovative businesses that are delivering scalable, sustainable solutions in the Cardiff Capital Region. IIC has become a key player in the investment landscape and we are delighted to have worked with the team on another significant investment in a business contributing to the economic growth of the region.”