A Gateshead tech start-up which has created an app that rewards users for cutting down on energy consumption has secured a £700,000 investment.
Equiwatt rewards consumers for switching off appliances at peak times, allowing users to turn off appliances simultaneously as a community, leading to big drops in collective demand. The firm has raised the further six-figure sum 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 help equiwatt to roll out a new SaaS (software as a service) platform for utility companies and low-carbon technology manufacturers. It will also help it to build up growth in the run-up to a planned Series A investment round in the year ahead.
The company’s free 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.
Its new powerResponse platform has been adopted by a major Ƶ energy supplier, and 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 launch in 2020. Since the last investment in August 2023, the company has grown the number of users from around 5,000 to 120,000, triggering a five-fold increase in revenue. In the year ahead it expects to see a four-fold increase in turnover.
Dr Johnson Fernandes, founder and CEO of equiwatt, said: “Managing domestic energy demand will be crucial to reducing the Ƶ’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.”
