Fuse Energy Raises €59 Million To Accelerate Expansion Of Energy Operations

The round was led by Lowercarbon Capital and Balderton Capital, with contributions from Ribbit Capital, Lakestar, Latitude, QuantumLight (founded by Revolut's Nik Storonsky), Future Positive Capital, Creandum, Accel, Formula 1 world champion Nico Rosberg via 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 seen continued investor interest in a diverse range of European energy and EnergyTech business models, setting a strong context for Fuse Energy's funding raise.

In France, Spark Cleantech secured €30 million to develop cleaner energy solutions for heavy industries. Meanwhile, Clevergy from Spain raised €3.2 million to expand its smart energy retail platform across Europe, which is especially relevant given Fuse Energy's plans to expand into Spain.

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Northern Europe has also seen notable activity with PowerUP Energy Technologies from Estonia raising €10 million to scale its hydrogen powered electric generator manufacturing and Chapter from Amsterdam securing €3 million for its AI-driven energy transition software.

Germany has remained active in energy optimization and management, with Ecoplanet and etalytics each raising €16 million to scale their enterprise energy-management and optimization technologies. Smaller rounds such as Delta Charge's €3.7 million raise focused on grid and storage infrastructure, are also significant.

In the infrastructure space, Return, based in the Netherlands announced a €300 million growth capital round to expand its battery storage capacity.

Together, these rounds total around €390 million in disclosed funding for 2025 highlighting sustained investment in European energy startups across software, hardware, infrastructure and vertically integrated models. This trend closely aligns with Fuse Energy's strategy of combining generation, supply, trading, and consumer hardware within 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 former Revolut executives Alan Chang and Charles Orr, Fuse Energy aims to revolutionize the energy sector by making energy more affordable and abundant.

By integrating all stages of the energy process such as renewable site construction, power generation, trading, supply, installations, and hardware into a single company, Fuse Energy claims to eliminate many of the inefficiencies that drive up costs for consumers in traditional energy models.

As a result, Fuse Energy believes it can scale rapidly, operate more efficiently, and offer energy at prices approximately 10% lower than traditional providers, helping households save up to €228 (£200) per 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 reached €341 million ($400 million) in annual recurring revenue (ARR), growing 8x year-on-year and becoming cash flow positive all before entering its fourth year.

The company plans to use the latest funding to meet rising demand at scale, expanding its operations from the UK into Ireland, Spain and the US, where it already supplies power to over 200,000 households.

In addition, Fuse Energy is set to launch its first in-house consumer hardware products: a micro solar and battery solution designed to make generating solar power more accessible and affordable. This innovation will help balance the grid, reduce overall system costs and deliver savings for consumers.

The company has also announced the launch of The Energy Network, a system that rewards customers for shifting energy usage to off-peak periods. A public rollout is scheduled 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.”