Swedish startup Elvy, which offers consumers 15-year long energy tariffs, has secured $3.5m in equity funding and $150m in debt funding — as investor interest in energy software startups continues to grow.
Launched in 2024, Elvy’s unique offering helps it stand out from other energy providers, which typically offer 12-month tariffs. The company’s 15-year product is priced at around 2,500 SEK ($233) a month. Elvy also provides energy assets like heat pumps, EV chargers and solar panels free of charge.
Elvy’s equity comes from Essential Capital and Giant Ventures, alongside a roster of angel investors including former Klarna execs Knut Frängsmyr and Jespert Wigardt, as well as Max Junestrand, the founder of legaltech firm Legora (previously Leya). The company, which launched last year, secured its debt financing from Sweden’s Marginalen Bank.
Johan Outinen, cofounder and CEO of Elvy, says consumers will only transition to greener options if they make financial sense. “Transitioning to clean energy must start by offering financial benefits, and then the adoption of clean energy will come naturally.”
The company makes money through energy arbitrage: storing electricity in consumers’ home energy assets when the price of generating it is low, and then dispatching it to the grid when prices are higher.
Profit generated from that goes into subsiding the installation of energy assets on consumers’ homes, which in turn means Elvy has more assets to use for energy arbitrage. Elvy currently has 150 customers in Sweden and is targeting 1,400 by the end of the year.
Read the orginal article: https://sifted.eu/articles/klarna-elvy-energy-tariffs/
