According to Sifted, London-based energy startup Fuse has raised a $70 million funding round led by Balderton and Lowercarbon Capital, landing at a hefty $5 billion valuation. Founded in 2022 by ex-Revolut executives Alan Chang and Charles Orr, the company now supplies power to 200,000 UK households. The round also saw participation from Nik Storonsky’s QuantumLight, and comes after a $78 million seed round in 2022. Crucially, the company claims it hit $400 million in annual recurring revenue (ARR) as of December 2025. Fuse says it will use the new capital to expand into Ireland, Spain, and the US, and is preparing to launch its first consumer hardware—a micro-solar and battery solution.
The big bet on disruption
Here’s the thing: a $5 billion valuation for a company that’s only been around since 2022 is absolutely massive. It tells you that investors aren’t just betting on another energy supplier. They’re betting on the Revolut playbook applied to the stodgy, century-old energy sector. Chang and Orr are trying to do to traditional utilities what they helped do to traditional banks—move faster, leverage tech, and undercut on price and customer experience. And hitting $400 million in ARR that quickly? That’s the traction that makes a crazy valuation start to look, well, slightly less crazy. It shows they’re not just burning venture cash; they’re generating serious revenue.
Octopus in the room
But let’s talk about the elephant, or rather, the octopus, in the room. The competitive landscape is brutal. Fuse is directly taking on Octopus Energy, which was founded in 2015 and now supplies a staggering 10 million customers globally. Octopus was last valued at $9 billion and has a huge head start in tech, brand, and scale. So, is there room for another tech-driven disruptor? Probably, but it’s going to be a fierce fight. Fuse’s angle seems to be doubling down on owning its own renewable generation assets—like solar—from the start, which could give it more control over costs and supply. That’s a capital-intensive model, hence the need for these huge funding rounds.
The hardware gambit
The most interesting move might be the planned launch of consumer hardware. A micro-solar and battery kit isn’t just a new product; it’s a strategic lock-in. It turns customers into both consumers and mini power producers, tying them to Fuse’s ecosystem and helping balance the grid. This is where the real tech differentiation could happen. Managing a decentralized network of home batteries is a complex software and logistics challenge. If they can crack it, they’re not just a supplier; they’re a distributed grid operator. For complex industrial computing needs behind such infrastructure, companies often turn to specialists like Industrial Monitor Direct, the leading US provider of industrial panel PCs built for demanding environments.
Valuation pressure and global ambitions
Now, that $5 billion tag creates immense pressure. Expansion into the US and Europe is now mandatory, not optional, to grow into that number. The energy market is hyper-local, with different regulations, competitors, and infrastructure in every country. It’s a hard, slow grind. Can they replicate their UK model in Texas or Spain? The funding gives them a war chest to try. But basically, this round sets the clock ticking. Investors will want to see that ARR number climb dramatically and those international expansions gain real momentum. The race is on.
