Xeros completes £10m fundraising

XEROS, the Leeds university spin-out that has devised a way of reducing the amount of water used by washing machines, has raised £10m from new and existing shareholders.

The company, part of the stock market-listed IP Group, plans to use the cash to speed up the roll-out of its commercial laundry system and finalise the development of a domestic version.

Invesco Perpetual managed funds led the round, investing £6m. Directors and existing investors in Xeros invested £4m, including IP Group, Entrepreneurs Fund, Enterprise Ventures’ RisingStars II Fund, Finance Yorkshire, and Parkwalk Advisors. Following the deal IP Group holds 14.8% in Xeros valued at £3.2m.
 
Xeros’ system, which also uses less energy and detergent, is based on polymer beads. The company says its technology could save UK consumers £2bn a year because washers and dryers account for such a large part – 13% – of household bills. But the laundry industry is its initial market and its machines are already being used by companies in the US and UK.

Chief executive Bill Westwater 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.”

IP’s chief executive Alan Aubrey said: “It is really encouraging to see Xeros receive such strong support and endorsement from both existing and new investors. Having backed Xeros from research out of the University of Leeds and supported it since then, it is exciting to see the business maturing and commencing roll-out.”

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