A London based technology challenger, which provides energy derived from renewable sources to homes within the metropolis, has been awarded funding worth £200 million, according to the Evening Standard. The international investors see potential in the renewables sector and also with the concept of the online business model.
The company is called Bulb, and it is quickly rising to become the U.K.’s leading renewable energy provider. The startup is taking on major traditional energy firms like British Gas and E.ON, as Forbes reports. The company has developed a model whereby where consumers can switch to Bulb’s renewable energy provision online. Bulb is able to offer renewable energy for a lower price than many larger suppliers as it relies on automation and modern technology.
Bulb is based in the Spitafields area of East London. The startup, founded four years ago, is valued at around £400 million. The startup company was founded by Hayden Wood and Amit Gudka. Unlike other energy companies, Bulb only offers energy generated from renewable sources like wind and solar power, or via the Llyn Brenig Hydro in North Wales. The objective of the company is to help Londoners to reduce their carbon emissions.
Despite growth from 15000 users in 2014 to 670,000 households in the London area today, Bulb has yet to turn a profit. It makes about £50 per household per year. However the company is edging closer to profitability, which is something that has sparked the interest of investors. Investors in Bulb include DST Global, a global firm that was an early investor in Facebook. Another backer is the US hedge fund Magnetar. The company employs 200 people and predicts as well as boosting revenues, growing in size to 250 people by 2029.
