Tem Secures $75M to Automate Energy Markets Using AI
▼ Summary
– Tem, a London-based energy software company, has raised $75 million in a Series B funding round led by Lightspeed Venture Partners, valuing the company at over $300 million.
– The company builds an AI-native platform that automates the pricing, matching, and execution of electricity transactions, replacing manual processes and legacy infrastructure.
– Its core system uses machine learning to forecast supply and demand, match buyers with suppliers, and reduce costly intermediaries in the energy market.
– Tem already serves over 2,600 UK businesses, reporting customer energy cost savings of up to 30% and handling roughly two terawatt-hours of transactions in 2025.
– The new funding will finance Tem’s expansion into the United States and Australia, targeting key markets like Texas to meet demand for modern energy trading tools.
A London-based software firm focused on the energy sector has successfully raised $75 million in a Series B funding round. The investment was spearheaded by Lightspeed Venture Partners and saw participation from a consortium of backers including AlbionVC, Atomico, Hitachi Ventures, Schroders Capital, Voyager Ventures, and Allianz. This latest capital injection values the company at over $300 million and will primarily fuel its international expansion into markets like the United States and Australia.
The company, named Tem, has developed an artificial intelligence platform built specifically for electricity markets. Its technology is designed to automate the entire process of pricing, matching, and executing power transactions. This represents a significant shift for an industry historically dependent on manual brokerages and aging operational frameworks. The core system employs advanced machine learning algorithms to forecast energy supply and demand with high accuracy. This intelligence allows the platform to efficiently connect buyers with suppliers, effectively cutting out numerous intermediary layers that traditionally inflate costs and complicate the process.
Adoption of the platform is gaining momentum. More than 2,600 commercial and industrial businesses in the UK currently use Tem’s services. These clients report achieving substantial savings, with energy procurement costs reduced by as much as thirty percent compared to conventional methods. The platform’s transaction volume further underscores this traction, having facilitated roughly two terawatt-hours of electricity trades in the past year. This scale indicates a rising appetite for automated, software-driven solutions in energy market infrastructure.
The fundamental proposition is to apply contemporary, software-first tools to a sector lagging in digital innovation. By consolidating disparate and manual workflows into a single, AI-powered engine, the company strives to inject greater efficiency into energy markets. The benefits for businesses include more transparent pricing signals and significantly lower transaction fees, providing them with better control over their energy expenditures and sustainability goals.
With the new funding secured, Tem’s roadmap involves aggressively expanding its global presence. Initial target markets include competitive energy hubs such as Texas in the U.S. and specific regions in Australia. These areas are particularly ripe for innovation due to ongoing grid modernization efforts and the rapid integration of renewable energy sources, which in turn generates fresh demand for agile and flexible energy trading platforms.
(Source: The Next Web)
