Fast-growing energy management firm raises funds for new platform
A UK company whose energy management app rewards consumers for switching off appliances at peak times has raised a further £700,000 from the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia Ventures, and private investors.
The latest funding will enable equiwatt to roll out a new SaaS (software as a service) platform for utility companies and low-carbon technology manufacturers and to continue its rapid growth in the run-up to a planned Series A investment round in the year ahead.
equiwatt’s free consumer app can be used by anyone with a smart meter, or with devices such as heat pumps, batteries and electric vehicle chargers that incorporate its technology. It allows householders to take part in schemes designed to reduce pressure on the grid, and earn points redeemable for gift vouchers or charity donations in return for switching off during peak periods.
The government wants to encourage greater participation in such schemes, and is urging energy suppliers to ensure all their customers have the chance to take part. equiwatt’s new powerResponse platform provides the technology to enable them to do so and has already been adopted by a major UK energy supplier. It can also be used by device manufacturers, housing associations or retail loyalty schemes to roll out to their customers.
The latest funding round is the fifth led by Mercia Ventures and the NEVF, which have backed equiwatt since its inception in 2020. Since the last investment in August 2023, the Gateshead-based company has increased the number of consumers using its technology from around 5,000 to 120,000. It has also achieved a five-fold increase in revenue and is on course for a further four-fold increase in the year ahead.
Dr Johnson Fernandes, founder and CEO of equiwatt, said: “Managing domestic energy demand will be crucial to reducing the UK’s reliance on fossil fuel power stations and making the transition to clean energy. We believe equiwatt can play a key role in that.
“Our app has proved very popular with consumers who appreciate the chance to earn rewards. Our new powerResponse platform enables energy suppliers and other businesses to give their customers a chance to participate. This investment will support the roll-out of the platform and our vision to make clean energy affordable and accessible for all.”
Chris McCourt from Mercia Ventures added: “Having backed equiwatt from the very start, it is rewarding to see its rapid expansion. Its new platform has attracted strong interest within the industry and pressure from regulators will further drive uptake. As equiwatt embarks on the next stage of its growth journey, it has the potential to become a global leader in virtual energy management solutions.”
About Mercia Ventures
Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.
Mercia Ventures is part of Mercia Asset Management PLC and sits alongside its wider private equity, debt and proprietary balance sheet capital operations. The Group has 11 offices in the UK and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. Mercia Asset Management PLC currently has c.£1.4billion of assets under management and, since its IPO in December 2014, has a portfolio of over 400 start-ups from pre-seed to Series B. Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
About The North East Fund
The North East Fund is a suite of five venture capital and loan funds which was established in April 2018, to invest £130m in around 600 North East businesses in the period to December 2023. The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs. The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA regulated fund managers. Details of these, and up to date information on the progress of the programme, is available on The North East Fund’s website: www.northeastfund.org
The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds. It is jointly owned by the seven North East local authorities.
About the European Regional Development Fund
The North East Fund will receive up to £66,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Levelling Up, Housing and Communities is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
About the European Investment Bank
The European Investment Bank (EIB) will lend up to £60,000,000 to the North East Fund programme. The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. For more information, visit: http://www.eib.org/about/index.htm
