An energy transactions scaleup has raised £55 million in an oversubscribed Series B round led by Lightspeed Venture Partners.
The investment comes as tem surpasses $300m annualised gross transaction value and brings its total funding to $94m.
The round featured strategic follow-on participation from Hitachi Ventures, Voyager Ventures, Schroders Capital and Allianz alongside existing investors including AlbionVC, Atomico and Revent.
Paul Murphy, partner at Lightspeed Venture Partners, joins tem’s board as part of the round.
The investment will also go towards tem’s international expansion plans. Texas and Australia – where the business is in talks with supply and demand customers in need of its transaction infrastructure – will be priority markets, with several others to follow.
tem claims to be building the first AI-native energy transaction infrastructure to fix a broken market – replacing the traditional transaction flow with a single solution that removes inefficiencies, and returns value back to businesses and generation owners.
The technology has two components: Rosso, an AI-powered transaction engine that strips out hidden fees and inefficiencies from every energy deal, executing contracts from end to end; and RED, a ‘neo-utility’ built on top which is enabled by Rosso’s price advantage and gives businesses and brokers a modern interface to contract, buy, sell and manage energy, whilst unlocking a new price floor.
In 2025 alone, tem has facilitated over 2TWh of energy transactions – the equivalent of powering all of Liverpool for a year – for its 2,600+ customers throughout the UK, including Boohoo Group, Fever-Tree, Silverstone Circuit and Newcastle United FC.
tem claims to reduce business energy bills by up to 30%, delivering a structural price advantage that no incumbent can match. As its customer base and transaction volume grow, Rosso’s data pool will become more advanced, the firm says, progressively unlocking further price innovation.
“Energy underpins every industry in the world, and yet no one has succeeded in course-correcting the fundamentally flawed way the markets work,” said Joe McDonald, CEO and co-founder.
“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.”
Murphy added: “tem is one of those rare companies whose insight, technology and roadmap to scale all line up.
“They’ve combined deep market expertise with exceptional engineering, and a plan with global potential from day one. We back a small number of companies each year, and between the clear market demand and the economics of tem’s model, which align perfectly – tem stood out immediately.
“We’re excited to work alongside them as a true partner as they scale globally.”