London-Based Energy Transactions Scale-up Tem Raises €62.9 Million Funding

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.

tem was founded in 2021 by Joe McDonald, Jason Stocks, Bartlomiej Szostek, and Ross Mackay, four energy specialists who previously built and exited London-based EnergyTech platform Limejump.

The company argues that energy pricing and trading have long relied on complex and outdated market systems that hide fees and risk premiums within contracts, increasing costs for businesses. tem aims to address this by developing what it describes as the first AI-native energy transaction infrastructure, designed to streamline transactions and return value to businesses and energy producers.

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tem’s technology is built around two core components: Rosso and RED. Rosso is a transaction engine that removes hidden fees and inefficiencies while managing energy contracts end-to-end. RED is a neo-utility platform built on Rosso, providing businesses and brokers with tools to buy, sell, contract, and manage energy through a modern interface while benefiting from improved pricing.

In 2025, tem facilitated more than 2TWh of energy transactions roughly equivalent to powering Liverpool for a year serving over 2,600 UK customers. The company states its platform can reduce business energy bills by up to 30% while enabling further pricing innovation as transaction volumes grow. Its customers include Boohoo Group, Fever-Tree, Silverstone Circuit, and Newcastle United FC.

Looking ahead, tem plans to expand its infrastructure to support both traditional utilities and new energy providers. The company intends to use new funding to support international expansion, prioritising Texas and Australia, where it is already engaging with supply and demand partners, with plans to enter additional markets in the future.

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.”

About Tem

tem is developing transaction infrastructure for a modern energy market, aiming to expand universal access to affordable electricity. Its platform streamlines energy trading, reduces inefficiencies, and lowers costs for businesses and energy producers, helping create a more transparent, efficient, and accessible energy ecosystem.