Oxto Energy has secured a £300,000 loan from the Enterprise M3 Short Term Loan Scheme to cover up-front costs for an overseas contract.

The finance will enable the company, which is headquartered in Guildford, to cover the advance payments for materials and sub-contractors that are required to fulfil its latest project to install ten flywheel batteries in Kenya.

Oxto has developed a new generation flywheel energy storage technology that can deliver safe, scalable energy storage at a competitive cost. The flywheel battery works alongside any renewable energy source, from large wind turbines to smaller electrical vehicle charging stations, stabilising and storing the electricity from these sources. This provides Oxto’s customers with reduced energy costs whilst helping them to achieve their sustainability goals.

George Prassinos, Founder and CEO of Oxto Energy commented: “The up-front costs associated with large contracts can be prohibitive to small businesses like ours. This finance gives us the capacity to take on the opportunities available and further the growth of the business. The FSE Group analysed our current pipeline and the companies we partner with and was able to provide the support needed for us to deliver this latest project.”

There has been a large growth in demand for cleantech power solutions globally, including in energy storage, which has traditionally been fuelled by diesel. Oxto Energy is constantly researching ways to design and manufacture comprehensive solutions that can meet the varied requirements of global companies and diverse electricity markets.

James Edwards, Investment Manager at The FSE Group which manages the EM3 Short Term Loan Scheme on behalf of Enterprise M3 Local Enterprise Partnership (LEP), added: “Oxto’s highly experienced and well-connected management team has successfully developed an innovative, market-leading technology that is gaining traction across the globe. With five contracts secured and a further 30 in the pipeline, they are well on course to reach their growth ambitions and we look forward to working with George and the team to see this delivered.”

Kathy Slack OBE, Director Enterprise M3 LEP, said: “Enterprise M3 LEP has put the global goal of Net Zero at the very heart of our economic recovery plan, so I am delighted that we’ve been able to help fund OXTO Energy to further develop its flywheel energy storage technology through a project in Kenya. This demonstrates the many opportunities available to businesses within the cleantech industry and I look forward to seeing more investments like this in the future.”

The EM3 Short Term Loan Scheme is part of the Enterprise M3 Funding Escalator, £10million initiative funded by Enterprise M3 LEP. The escalator, which also includes an expansion loan scheme and an equity growth fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities across the EM3 area.

For more information about the Enterprise M3 Funding Escalator please visit: https://www.thefsegroup.com/fund/enterprise-m3-funding-escalator/ or contact James Edwards at james.edwards@thefsegroup.com tel:  01276 608531 / 07384 8167 for more information about Oxto Energy, visit: www.oxtoenergy.com

Funding London is delighted to announce today that the Greater London Investment Fund’s (GLIF) debt fund manager The FSE Group has been accredited by the British Business Bank as a lender under the Recovery Loan Scheme (RLS). This Government backed scheme is expected to run until 31st December this year. It will allow GLIF’s debt funds to offer further financial support to businesses, as they recover and grow, following the severe impact of the pandemic. The FSE Group, GLIF’s debt funds manager, will be responsible for committing the capital that will be made available under RLS.

Previously under CBILS, GLIF’s debt funds have helped 27 businesses over the course of 11 months. £11.3M has been committed to companies that had suffered a revenue loss or experienced a cashflow disruption due to the Covid-19 outbreak.

Now through RLS, GLIF’s debt funds will provide even more competitive loans from £100,000 to £1m to London’s small businesses. The scheme is designed for businesses that can afford to take out additional debt finance to help them manage cashflow, growth or as an alternative to traditional capital investment.

Maggie Rodriguez-Piza, CEO of Funding London, said: ‘We are delighted that we can now offer loans through our debt funds under the Government’s Recovery Loan Scheme. As we move from lockdown to recovery, we look forward to support as many London based SMEs as possible and bridge the funding gap for those struggling to access finance.

Kala Desai, Head of Funds London at The FSE Group, said: “GLIF’s debt funds are proud to support high growth, innovative SMEs based in London, with growth loans and previously the Government backed CBILS product. Our recent Recovery Loan Scheme accreditation will provide London Investment Managers with an additional means of supporting SMEs as they scale up, facilitating economic growth and recovery as lockdown measures ease.”

Greater London Investment Fund (GLIF) operates as a £100M fund of funds managed by Funding London. It supports economic growth by providing loan and equity finance for London’s SMEs, through its investments in three sub-funds. MMC Ventures manage the equity sub-fund, and The FSE Group manage the two loan sub-funds. The GLIF and its sub-funds were launched in May 2019 by the Mayor of London. It is funded by the European Investment Bank, European Regional Development Fund and Funding London.

For more information, please visit GLIF £55m of debt funding is available, via loans between £100,000 and £1m. To apply click here

Funding London aims to bridge the London funding gap and enable real opportunities for sustainable growth in early and growth-stage companies. Returns generated from our funds are ploughed directly back into the London ecosystem, making investment available to the next generation. For more information, please visit Funding London