London-based energy company Fuse Energy, today announced an additional €59 million ($70 million) in funding to accelerate international expansion and fast-track their products to market – boosting its valuation to €4.2 billion ($5 billion).
The round was led by Lowercarbon Capital and Balderton Capital with participation from Ribbit Capital, Lakestar, Latitude, QuantumLight – the venture capital company founded by Revolut founder Nik Storonsky – Future Positive Capital, Creandum, Accel, Formula 1 world champion Nico Rosberg through Rosberg Ventures, and DSquared.
“From source to socket, we are simplifying the entire energy system by bringing every stage in-house,” says Alan Chang, co-founder and CEO at Fuse Energy.
This year has shown continued investor interest across a broad range of European energy and EnergyTech business models, providing useful context for Fuse Energy’s raise.
In France, Spark Cleantech secured €30 million to develop cleaner energy solutions for heavy industry, while Spain-based Clevergy raised €3.2 million to scale its smart energy retail platform across Europe – notable given Fuse Energy’s planned expansion into Spain.
Northern Europe also featured prominently, with Estonia’s PowerUP Energy Technologies raising €10 million to expand hydrogen-powered electric generator manufacturing, and Amsterdam-based Chapter securing €3 million for its AI-driven energy transition software.
Germany remained active in energy optimisation and management, with EU-Startups covering funding rounds for Ecoplanet and etalytics, each raising €16 million to scale enterprise energy-management and optimisation technologies, alongside smaller raises such as Delta Charge (€3.7 million) focused on grid and storage infrastructure.
At the infrastructure end of the market, the Netherlands-based Return announced €300 million in growth capital to expand battery storage capacity.
Taken together, these rounds amount to roughly €390 million in disclosed funding during 2025, underlining sustained capital flows into European energy startups across software, hardware, infrastructure and vertically integrated models – the latter aligning closely with Fuse Energy’s approach of combining generation, supply, trading and consumer hardware under one company.
“Combined with a relentless focus on efficiency and execution, we’re solving problems no one else can. This new capital and continued investor demand reinforce that we’re building one of the defining companies of the next decade,” adds Chang.
Founded in 2022 by ex-Revolut executives Alan Chang and Charles Orr, Fuse Energy aims to reshape the energy sector by making energy lower cost, and more abundant.
By combining all parts of the energy process in one company – spanning renewable site construction, power generation, trading, supply, installations and hardware – Fuse Energy reportedly eliminates many of the inefficiencies that drive up costs for consumers in traditional energy models.
As a result, Fuse Energy says they can scale quickly, operate with greater efficiency, and deliver power at prices that average around 10% lower than incumbents, saving households up to €228 (£200) a year on their energy bills.
Daniel Waterhouse, General Partner at Balderton, comments: “Europe needs sustainable, scalable and resilient power to support the next wave of technological and economic growth, as AI accelerates and energy demand rises. Fuse is rebuilding the entire energy system from first principles: vertically integrated, relentlessly efficient and engineered for scale.
“Alan and Charles’ massive ambition to redefine how the future is powered is what first got us excited three years ago, and the pace and quality of execution since has been beyond our wildest expectations. We’re proud to continue supporting this phenomenal team as they power Europe’s future.”
As of December 2025, Fuse Energy has hit €341 million ($400 million) ARR, growing 8x year-on-year to become cash flow positive – all before it enters its fourth year.
The company will use the latest funding to meet rising demand at scale, expanding across Ireland, Spain, and the US from the UK, where it already supplies power to over 200,000 households.
Fuse Energy is also preparing to launch its first in-house consumer hardware products: a micro solar and battery solution that makes generating your own solar power more accessible and affordable while helping to balance the grid, reduce overall system costs, and deliver savings for consumers.
Recently, the company also announced the launch of The Energy Network, a system that rewards customers for shifting usage to off-peak periods, with a public rollout planned for January 2026.
Clay Dumas, General Partner at Lowercarbon, added: “We keep reinvesting in Fuse because they’re proving that a verticalised energy company can be more profitable and scale faster than incumbents, while serving customers with a better product: lower-cost, more reliable, easier-to-access power.”
Read the orginal article: https://www.eu-startups.com/2025/12/founded-by-former-revolut-executives-britains-fuse-energy-secures-e59-million-to-to-scale-energy-operations/
