Real Tech Holdings Invests in SolX, a Filipino Startup Revolutionizing the Energy Market with a Technology oriented Market Place
Tokyo, Japan – Real Tech Holdings Co., Ltd. (Headquarters: Sumida-ku, Tokyo; Representatives: Akihiko Nagata, Yukihiro Maru, hereinafter referred to as “Real Tech”), is excited to announce its inaugural investment in the Philippines’ startup ecosystem. Real Tech has invested in SOLX Technologies Pte Ltd (SolX), a Filipino startup dedicated to developing an innovative digital energy solution platform.
This historic investment marks Real Tech’s first foray into the dynamic Filipino startup landscape and signifies a groundbreaking collaboration with Startup Venture Fund (SVF), a government-affiliated fund in the Philippines. Real Tech will continue to support SolX in its efforts to solve the Philippines’ electricity problems and build a sustainable electricity market together.
The Challenge: Philippines’ Electricity Market
In 2022, the Philippines achieved an impressive GDP growth rate of 7.6% year-on-year, positioning itself as one of Southeast Asia’s fastest-growing economies. However, the average annual income in the country, as reported by the International Labor Organization (ILO) in 2019, stands at a mere 450,000 yen, merely a fraction of Japan’s income level. Additionally, the Philippines contends with electricity rates that rank second highest in the Asian region, trailing only Japan.
Despite this situation, electricity rates in the Philippines are the second highest in the Asian region after Japan. The elevated electricity prices stem from various factors, including the nation’s limited fossil fuel resources, dependence on fossil fuel imports, and the high cost of electricity transfer not subsidized by the government. To compensate for this, the Philippines imposes high consumption and income taxes, which burden its citizens. Although the Renewable Energy Law of 2008 introduced a “renewable energy use standard ratio (RPS),” progress in adopting renewable energy sources has been slow, and electricity prices persist in their upward trajectory.
SolX’s Innovative Solution
SolX emerges as a transformative force in the Philippine energy landscape. The startup offers a groundbreaking marketplace that streamlines the analysis of electricity supply and demand, effectively mitigating the issue of exorbitant electricity prices. In 2021, the introduction of the Green Energy Option Program (GEOP) in the Philippines enabled electricity-intensive consumers to purchase 100% renewable electricity, resulting in savings of over 30% in selected cases.
While SolX’s platform is currently embraced by major clients in the Philippines, its market penetration covers only approximately 30% of its intended audience. Presently, the retail market primarily caters to large consumers with peak demand exceeding 500kw. However, by 2025, the market is set to expand to encompass ordinary households, potentially tripling its reach.
Moreover, SolX leverages its proprietary smart meters to gather real-time electricity usage data nationwide. This innovative approach minimizes communication delays associated with data collection and strives to create an environment where electricity can be procured at competitive prices.
↑SolX’s Digital Platform
Overview of the Fundraising
SolX won the Real Tech Award at the TECH PLANTER in the Philippines in 2022 and had long been seeking a strong investor in the deep tech sector in Japan and Southeast Asia. In early 2023, SolX received an investment from our group company Leave a Nest Capital and Foxmont, leading to this investment to further accelerate its growth.
Significantly, this marks the first co-investment with Startup Venture Fund (SVF), a Philippine government-affiliated fund, with which Real Tech gained co-investment approval in May 2023. Given the collaborative nature of SolX’s business, involving local governments and government agencies, SVF’s support structure is anticipated to expedite SolX’s growth and impact.
Amidst this era of electricity market liberalization, SolX stands as one of the few key players capable of bridging Filipinos to the cost-effective and eco-friendly electricity solutions they aspire for. As a result, SolX holds the potential to assume a significant role in the enhancement of Philippine infrastructure.
Real Tech is thrilled to be part of SolX’s journey and looks forward to championing innovation, addressing critical energy challenges, and driving positive change in the Philippines and beyond. Together, we aim to forge a brighter and more sustainable energy future for all.
About SolX Technologies Inc. (Singapore / Philippines)
- Established ：Deceｍber 2022
- Location ：68 CIRCULAR ROAD #02-01 SINGAPORE (Hold Co.)：UNIT 206 MQI CENTER 42 ESTEBAN ABADA ST LOYOLA HEIGHTS
- Representative ：Sergius Santos
- Business ：Developing platform to connect electricity retailers and consumers
- Web Site ：https://solx.ph/
- Investment ：September 2023
- 所在地 ：68 CIRCULAR ROAD #02-01 SINGAPORE (Hold Co.)：UNIT 206 MQI CENTER 42 ESTEBAN ABADA ST LOYOLA HEIGHTS
*1 Official Name: “Real Tech Fund 3 Investment Business Limited Liability Association” (commonly known as “Global Deep Tech Fund”).
About Real Tech Holdings
Real Tech Holdings Co., Ltd. is committed to addressing societal challenges through the investment and nurturing of deep tech startups with innovative technologies (Real Tech). Our venture capital fund, “Real Tech Fund,” was established by Akihiko Nagata, CEO of Euglena Co., Ltd., who has a proven track record of successfully guiding deep tech startups, and Yukihiro Maru, CEO of Leave a Nest Co., Ltd., who possesses extensive experience in supporting deep tech startups from their early stages. We work closely with governments, companies, and municipalities both domestically and internationally, providing hands-on support to enhance the value of deep tech startups. With over 20 billion JPY in managed assets, Real Tech Fund has invested in over 90 startups in Japan and globally. In 2021, it established the first impact investment fund in Japan focused on the deep tech sector.
Real Tech Holdings Co.,Ltd.
Public Relations: Narita