XL Ventures Cleared by MAS to Back Climate-Tech Startups

Singapore-based XL Ventures Pte Ltd, a company focused on climate technology, has obtained in-principle approval from the Monetary Authority of Singapore (MAS) to carry out activities as a Venture Capital Fund Manager (VCFM). This marks a key step for the firm as it moves toward securing a Capital Markets Services (CMS) license, which will allow it to officially manage venture capital funds in Singapore.

The approval helps XL Ventures to expand its role in the region’s startup and investment ecosystem, particularly in supporting climate-focused innovation. Once fully licensed, the company will be able to gmanage investments in early-stage and growth-stage ventures, further contributing to Singapore’s reputation as a hub for sustainable finance and technology-driven solutions.

XL Ventures, founded by Amit Sharma and Saroj Mishra, is focused on investing in early-stage startups that develop software, sensor, and AI-driven solutions to improve energy efficiency in commercial buildings and power infrastructure. The firm’s strategy targets technologies that are ready for deployment and can deliver measurable climate and commercial impact in the short term.

The founders believe that while long-term breakthroughs in areas like fusion energy and advanced materials will eventually play a key role, existing technologies can already create significant impact. “Software and AI provide immediate and scalable tools to optimize energy-intensive systems that currently operate in silos with large safety margins,” Sharma and Mishra said.

Their investment approach is built around supporting startups that solve real-world business problems from the start. According to the founders, technologies that improve operational efficiency and the bottom line are more likely to gain quick adoption, and when these solutions also reduce energy consumption, the commercial and environmental benefits align.

XL Ventures plans to work closely with a small portfolio of startups, providing hands-on operational support to help them establish a presence in Asia and scale in regional markets. The firm also intends to partner with large conglomerates in the region to create distribution and market access opportunities for its portfolio companies.

The company sees strong potential for European climate-tech and smart-tech startups to expand into Asian markets, where sustainability and energy efficiency are becoming key priorities for both governments and corporations. XL Ventures is already assisting several UK-based startups in entering Singapore, India, and other Asian economies, which now represent more attractive scaling opportunities than the US market for this sector.

Sharma, who is based in Singapore, previously worked as Global Head of Digital Business Development at Tech Mahindra, the IT services subsidiary of the Mahindra Group. Mishra, operating from London, co-founded Tazapay, a Series A cross-border B2B payments startup backed by PayPal, RTP Global, Peak XV, and other investors. He is also a co-founder of Bayfront Capital Advisors, a corporate finance advisory firm headquartered in Singapore.

By combining sector expertise, cross-border networks, and hands-on involvement, XL Ventures aims to accelerate the adoption of climate-focused technologies and strengthen Asia’s role in the global transition toward sustainable energy solutions. The MAS approval will further enable the firm to deploy capital strategically into startups capable of delivering both financial returns and measurable climate impact.

Image credits: XL Ventures