Kuala Lumpur-based venture capital firm Vynn Capital has led an $8.75-million seed funding round for MediSun Energy, a company specialising in advanced osmotic energy technology.
The funding, which consists of $5 million in venture debt and $3.75 million in equity financing, values the company at $44 million, according to a statement.
Other investors who participated in the round include Saudi investment company MOAJ Holding; TNB Aura’s Scout Initiative; climate tech-focused venture capital firm Ciri Ventures; and Frank Phuan, Business CEO of EDP Renewables APAC (formerly Sunseap) in his personal capacity.
MOAJ Holding had earlier announced its commitment to invest up to $30 million into MediSun’s Saudi Arabia business to form a local joint venture.
MediSun has partnered with Emirates Electrical and Instrumentation Company as the exclusive distributor of its technologies across the United Arab Emirates. It has recently formed a similar partnership with Singapore-based infrastructure and environmental engineering and construction firm HSL for operations in Southeast Asia.
MediSun utilises osmotic power to enhance energy efficiency in water desalination and to generate renewable energy. It has offices in Singapore, Malaysia, Thailand, Hong Kong and South Korea.
The company said it will use the funding proceeds to set up two facilities for membrane and stack production.
“MediSun’s solutions are crucial in solving water supply chain and scarcity issues while achieving net-zero carbon goals by reducing energy consumption. Over the medium term, we believe such technology can also be crucial for other industries, such as mobility and industrial sectors, that require innovation in energy management,” said Victor Chua, Founding and Managing Partner of Vynn Capital.
“This is especially important with the narrative of Malaysia and Southeast Asia playing a larger role in the renewable energy sector,” he added.
Vynn Capital said it will continue to look out for similar opportunities in key markets such as Singapore, Thailand, and Indonesia for its Mobility and Supply Chain fund.
The fund, Vynn Capital’s second investment vehicle, has recently invested in Malaysian robotics company DF Automation & Robotics.
The firm targets to raise $30 million for the fund, and has secured commitments from KWAP, Sime Darby Berhad, MAVCAP, and other strategic limited partners.
Editor’s note: This story has been updated to correct Frank Phuan’s designation, and that the investment was made in his personal capacity.
