tem, a London-based AI-native energy transactions scale-up, today announced that it has raised €62.9 million ($75 million) in an oversubscribed Series B round to accelerate UK and global rollout of its AI-native infrastructure, as it seeks to become the “Stripe of energy”.
The round was led by Lightspeed Venture Partners, with strategic follow-on participation from Hitachi Ventures, Voyager Ventures, Schroders Capital and Allianz. Existing investors, including AlbionVC, Atomico, and Revent, also participated. As part of this transaction, Lightspeed partner Paul Murphy will join tem’s board.
Joe McDonald, CEO and co-founder of tem, said, “Energy underpins every industry in the world, and yet no one has succeeded in course-correcting the fundamentally flawed way the markets work. For decades, the industry has tried to patch over the costly inefficiency of energy transactions with new utility brands and new promises. The real opportunity in energy looks a lot like what fintech did to banking: rebuild the core infrastructure, then let innovation explode on top of it.
“That’s exactly what tem is doing. We’re building the world’s first AI-native infrastructure for energy transactions – making them fairer, more transparent, and radically more efficient. But more importantly, we’re unlocking the next generation of energy companies. Thousands of new brands, neo-utilities, and market participants will be able to plug into tem and compete on a level playing field. This funding allows us to set a new global standard for how energy is transacted – whether that’s powering a warehouse in Manchester, a neo-utility in Texas, or one of the largest utilities in the world.”
tem was founded in 2021 by Joe McDonald, Jason Stocks, Bartlomiej Szostek, and Ross Mackay, four energy experts who scaled and exited a London-based EnergyTech platform, Limejump.
According to the company, for decades, energy has been priced and traded through complex, opaque and outdated market infrastructure that buries fees and risk premiums inside contracts, significantly driving up the cost of energy bills for businesses.
tem claims to be building the first AI-native energy transaction infrastructure to fix the broken market. It aims to replace the traditional transaction flow with a single solution that removes inefficiencies and returns value to businesses and generation owners.
Rosso and RED are the two key components of tem’s technology. Rosso is an AI-powered transaction engine that strips out hidden fees and inefficiencies from every energy deal, executing contracts from end to end. RED is the neo-utility built on top of Rosso that offers businesses and brokers a modern interface to contract, buy, sell and manage energy, whilst unlocking a new price floor. It is enabled by Rosso’s price advantage.
The UK scale-up reports that in 2025 alone, it facilitated over 2TWh of energy transactions (the equivalent of powering all of Liverpool for a year) for its 2,600+ customers throughout the UK. tem claims to reduce business energy bills by up to 30%, delivering a structural price advantage. As its customer base and transaction volume grow, the company states that its data pool will evolve, progressively unlocking further price innovation. Some of its customers in the UK include Boohoo Group, Fever-Tree, Silverstone Circuit, and Newcastle United FC.
As tem scales and builds network effects, the company plans to extend its infrastructure for incumbents and neo-utilities as well. The company plans to use the fresh capital for international expansion plans, with Texas and Australia being the priority markets, where it is in discussions with supply and demand customers in need of its transaction infrastructure. The company plans on expanding to additional markets as well in the future.
Read the orginal article: https://www.eu-startups.com/2026/02/london-based-energy-transactions-scale-up-tem-raises-e62-9-million-to-become-the-stripe-of-energy/
