A Gateshead 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 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.
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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 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.”
