London-based energy technology company Tem has raised $75 million in fresh funding as it looks to expand internationally and accelerate the rollout of its AI-driven platform designed to cut business electricity bills by up to 30 per cent.
The funding round was led by Lightspeed Venture Partners and is understood to value the four-year-old company at around $300 million. Tem plans to use the capital to further develop its technology and scale its operations in the US.
Founded in 2021, Tem has built a platform it calls “Red”, described by the company as a neo-utility that uses artificial intelligence to match electricity supply and demand directly, bypassing the wholesale market and its multiple intermediaries.
Joe McDonald, Tem’s co-founder and chief executive, said the aim was to remove what he described as unnecessary “middle men” from the energy system. “We calculate that about $1 trillion is taken out every year in transaction fees by ‘Big Energy’,” he said. “Our mission is to take that cost of transaction down to zero.”
Tem’s software is already being used by around 2,600 businesses, including Boohoo and Fever-Tree, to reduce electricity costs. Since launching Red in November 2024, the company says it has saved customers $35 million in energy bills. Two schools have also signed up, with one saving £55,000 a year, according to Tem.
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