Xeros successfully completes £10 million funding round
Xeros Limited, the environmentally-friendly cleaning company which is backed by Finance Yorkshire has successfully completed a £10 million fundraising from new and existing investors. The funding will be used to accelerate the roll-out of the Xeros commercial laundry cleaning system and finalise the development of a household system to replace conventional washing machines.
Invesco Perpetual managed funds led the round, investing £6 million in Xeros. Shares in Xeros will be held in the Invesco Perpetual High Income Fund and the Invesco Perpetual Income Fund, which are managed by Neil Woodford, Head of UK Equities at Invesco Perpetual. Directors and existing investors in Xeros raised the balance of £4 million, including IP Group, Entrepreneurs Fund, Enterprise Ventures’ RisingStars II Fund, Finance Yorkshire, and Parkwalk Advisors.
Xeros cleans clothes with very little water and Xeros polymer beads. The patented cleaning system comprises a special washing machine designed to release the beads into the drum for cleaning, and remove the beads from the clothes once the cleaning is complete. Up to 80% less water, 50% less energy and 50% less detergent is used in the Xeros system versus conventional washing, yet Xeros delivers superior cleaning results.
The $100 billion global laundry industry is the initial market for the Xeros polymer bead cleaning system. The technology was launched into the commercial laundry market in late 2012 with successful affirmation sites at Jeeves of Belgravia (London) and Watford launderers + cleaners, followed by installations in North America at Sterling Linen Services (New Hampshire), Hyatt Regency Reston (Virginia) and Crest Dry Cleaners (Virginia).
Domestic washing machines consume approximately 50 litres of water per wash. On average, washer/dryer systems account for 13 per cent of household energy use. If all UK households were fitted with machines powered by Xeros technology, the potential savings to UK consumers would total more than £2 billion per annum. It would also represent a net reduction of 4.2 million tonnes of CO2 per annum, the equivalent of taking 1.4 million cars off UK roads.
Bill Westwater, Chief Executive Officer of Xeros, said: "We have a big but simple idea: to convert the traditional world of aqueous washing to Xeros bead cleaning. Our superior cleaning method delivers a whole variety of benefits to people, businesses and the environment. This fundraise represents another milestone in our journey towards making that idea a reality."
John Samuel, Chairman of Xeros, said: "We are delighted that Invesco Perpetual has joined our cornerstone investors and company directors in supporting our vision for growth. This £10 million investment provides a significant platform for the creation of new jobs at Xeros, which underlines Deputy Prime Minister Nick Clegg’s sentiment when he visited Xeros that ‘green is good for the economy."
Charles Henderson, UK Equities Business Manager at Invesco Asset Management Limited, said: "Xeros is a pioneering British company with the potential to become a global game-changing business. Through our funds, Invesco Perpetual is giving investors the opportunity to support a potential high growth green company."
Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help a range of small and medium sized businesses to meet their funding requirements for growth and development.
The project is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme, £15million from Yorkshire Forward’s Single Programme, and £45million match funding from the European Investment Bank.
For more information about Finance Yorkshire, please visit www.finance-yorkshire.com or ring 0845 649 0000.
Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire