Fuse Energy hits $5bn valuation, plans international expansion

Fuse Energy has raised $70 million in fresh funding, lifting the London-based energy start-up's valuation to $5 billion in its third year of operation.

The round was led by existing backers Balderton Capital and Lowercarbon Capital. Fuse said every major current investor took part, alongside new investors including QuantumLight, the venture fund founded by Revolut co-founder Nik Storonsky.

Fuse was founded in 2022 by former Revolut executives Alan Chang and Charles Orr. The company positions itself as a vertically integrated energy provider that spans renewable site construction, power generation, trading, supply, installations and hardware.

The latest funding comes as Fuse reports annual recurring revenue of $400 million as of December 2025. The company said revenue grew eightfold year on year and that it turned cash flow positive before the end of its third year.

International push

Fuse plans to use the new capital for international expansion. It currently operates in the UK and supplies power to more than 200,000 households.

The company plans to grow in Ireland, Spain and the US. It has presented this expansion as a response to rising demand for lower-cost electricity and increasing pressure on national grids.

Fuse said it integrates generation, trading and retail supply within a single business. It argues that this structure reduces the need for outsourcing and cuts inefficiencies in conventional utility models.

The company said this approach allows it to offer tariffs that average around 10% below incumbent suppliers in its home market. It claimed this level of discount can save households up to £200 a year on energy bills.

Alan Chang, Co-Founder and Chief Executive at Fuse Energy, said the group's strategy focuses on bringing all parts of the energy chain under one roof.

"From source to socket, we are simplifying the entire energy system by bringing every stage in-house," said Alan Chang, Co-Founder and CEO at Fuse Energy. "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."

Investor backing

The new funding round includes a line-up of venture investors that have supported Fuse since its early stages. Participants include Ribbit Capital, Lakestar, Latitude, Future Positive Capital, Creandum, Accel, Rosberg Ventures, and DSquared.

Balderton General Partner Daniel Waterhouse said rapid growth in data-heavy industries is driving demand for new energy infrastructure.

"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," said Waterhouse.

Lowercarbon General Partner Clay Dumas said the firm has increased its stake as Fuse has expanded.

"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," said Dumas.

New products

Fuse is preparing a move into consumer hardware alongside its software and supply activities. The company is developing a micro solar and battery product aimed at homes that want on-site generation.

Fuse said the system will support self-generation and storage of solar power. It also said the product will contribute to grid balancing and lower overall system costs while providing savings for users.

The start-up is also building new demand response services. It recently unveiled The Energy Network, which is a programme that rewards customers for shifting electricity usage into off-peak periods.

Fuse plans a public rollout of The Energy Network in January 2026. The company expects the new funding and product launches to underpin the next phase of its growth in Europe and the US.