From source to socket: London’s Fuse Energy raises €8.5 million and launches gas supply to power mass market growth

Fuse Energy, a UK electricity supplier, has today announced the closing of an €8.5 million follow-on investment and its entry into the domestic gas market, marking a significant milestone as the company seeks to provide a seamless, all-in-one energy experience.

The investment comes from Lowercarbon Capital and Balderton Capital, taking total funding raised to €85 million. Previous investors include Multicoin, Lakestar, Accel, Creandum, and Ribbit. The news comes as the company hits €76 million annualised revenue.

“We’re using the same approach that helped Revolut scale; vertical integration, technical talent, and customer obsession”, said Alan Chang, Co-founder and CEO, Fuse. “The world has a major energy problem: legacy utilities are slow, inefficient, and built on old infrastructure. There is little urgency among incumbents to change this. Our integrated approach means we can drive down costs while investing in a more resilient grid – building the future of energy that is cheap, abundant and clean”.

Founded in 2022 by former Revolut executives Alan Chang and Charles Orr, Fuse Energy claims to be the first supplier to join the market after the energy crisis. Thy are disrupting the sector by building a new kind of energy company – one that owns the entire energy journey from source to socket.

With its own low carbon generation assets, including solar and wind farms, direct-to-consumer energy supply and installations, and in-house energy trading, Fuse delivers electricity – and now gas – via a mobile app or web experience.

Growing 7x year-on-year in the last two years, it already supplies electricity to 50,000 UK homes and is reportedly among the fastest growing energy companies in Europe.

While supporting the global transition to an electrified, low-carbon energy system, the company recognises that gas remains essential for most UK homes today. By entering the gas market, Fuse aims to simplify energy supply for consumers, while driving down costs and accelerating electrification. Fuse also claims to reinvest revenue into clean energy infrastructure and is pioneering new technologies such as green hydrogen gas.

With approximately 84% of UK households using gas in addition to electricity, this move enables Fuse to address a much larger share of the domestic energy market, while reportedly reducing household energy bills by €172 a year.

“Successive cost of living crises show that our energy system is no longer fit for purpose,” said Charles Orr, Co-founder and Chief Operating Officer of Fuse. “Affordable energy isn’t a luxury, it’s fundamental to a decent standard of living and a productive economy. At Fuse, we’re building the technology needed to realise that future”.

On the supply side, Fuse owns and operates low carbon generation assets, with 18 MW active and over 1 GW in the pipeline across the UK, US, and Europe.

The funding will help Fuse expand internationally to Ireland, Europe and the US, boost product development and R&D, and introduce AI-powered app features.

“Sunbeam to socket, Fuse is re-writing the renewable energy playbook,” said Clay Dumas, managing partner at Lowercarbon Capital. “From record-breakingly quick construction of new solar power plants to top-rated home EV charger installations, no one matches Fuse’s ambition when it comes to managing electrons. Now we’re doubling down to help them bring their UK-leading energy products to a smart appliance near you.”

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