The archive · Climate & Energy · Strategic decision · 2022–2026
Fuse Energy's source-to-socket bet: ex-Revolut founders, $5B, 300k UK homes
Two ex-Revolut executives vertically integrate UK energy - generation, trading, supply and app - reaching profitability, a $5B valuation and 300k+ households.
Fuse Energy
What the business is
A UK energy company that owns renewable generation, wholesale trading, retail electricity supply, demand-forecasting software and consumer hardware under one roof, selling power directly to households through an app.
How it started
In 2022 Alan Chang and Charles Orr, two early Revolut executives, watched the UK energy crisis: wholesale prices spiked and roughly thirty suppliers collapsed. Their read was that incumbents had outsourced generation, trading and retail into a fragmented chain that could not adapt. They launched Fuse Energy to rebuild the whole value chain in one company, in the same vertically integrated way Revolut had attacked banking.
What happened
Fuse supplied electricity to UK households and kept adding layers: consumer gas supply, The Energy Network (a programme rewarding customers for shifting use to off-peak, with public rollout set for January 2026), and an in-house micro solar-and-battery product. Investors followed the story: a $70M Series B in December 2025 led by Lowercarbon Capital and Balderton - with Accel, Creandum, Ribbit, Lakestar and Nik Storonsky's QuantumLight among others - valued the company at about $5B, and in June 2026 20VC and Collaborative Fund added $30M to close the round at roughly $250M total raised.
How it ended up
By mid-2026 the company said it had been profitable every month since December 2025 and supplied more than 300,000 UK households, with a 1 GW generation pipeline, a new 32,000 sq ft Canary Wharf headquarters, and expansion into Ireland, Spain and the US underway.
Background
Fuse Energy is the bet that Revolut's vertical-integration playbook transfers to electricity. Alan Chang and Charles Orr, two early Revolut executives, founded it in London in 2022 at the peak of the UK energy crisis, when record wholesale prices were toppling suppliers. Their diagnosis: the industry's fragmentation - separate companies for generation, trading and retail, each taking a margin - made power expensive and slow to adapt, and an integrated newcomer could do better.
Fuse built the chain itself: renewable generation, in-house wholesale trading, retail supply, and machine-learning demand forecasting that models each customer's home with weather and property data. By not outsourcing, the company says it removes around 17% of cost versus legacy providers and can price roughly 10% below incumbents, saving households up to £200 a year. The product surfaced as an app-based electricity account, then gas, a January 2026 'Energy Network' that pays customers to shift usage off-peak, and an in-house plug-in solar and battery kit.
Capital followed the model. A $70M round in December 2025, led by Lowercarbon Capital and Balderton with Accel, Creandum, Ribbit, Lakestar and QuantumLight participating, valued Fuse at about $5B in its third year, when the company reported roughly $400M annualized revenue, up 8x year-on-year, and cash-flow positivity. In June 2026, 20VC and Collaborative Fund added $30M to close the Series B at about $250M total raised, by which point Fuse claimed group-level profitability every month since December 2025.
As of mid-2026 Fuse supplied more than 300,000 UK households, reported a revenue run-rate above $550M after 32% growth in Q1, employed over 400 people, and was opening a 32,000 sq ft Canary Wharf headquarters while expanding to Ireland, Spain and the US. The open question is whether one company can keep winning on price against an entrenched, subsidised incumbent like Octopus Energy as it scales beyond its home market.
What has to be true
- The UK energy crisis removed entry barriers: roughly thirty suppliers collapsed in 2021-22, leaving households angry and switching, so a new brand could win accounts fast.
- Vertical integration created a real cost wedge - roughly 17% versus the median supplier per the founders - which showed up as below-incumbent prices rather than just a pitch.
- Software was the differentiator, not capital intensity: per-household digital-twin forecasting cuts trading waste that outsourced suppliers could not touch.
- Ex-Revolut founders brought a playbook (own the rails, automate operations, move fast in a regulated consumer market) and investor access that most energy entrants lack.
What can be applied
Pick a regulated consumer market where incumbents outsource every step, then re-own the chain end-to-end; the efficiency wedge funds below-market pricing.
Aftermath
As of September 2026, Fuse Energy is scaling: it claims more than 300,000 UK households, profitability in every month since December 2025, and annualized revenue above $550M after 32% Q1 growth (City AM, June 2026). It closed its Series B at roughly $250M total raised, opened a 32,000 sq ft Canary Wharf HQ, and planned to hire over 380 people while entering Ireland, Spain and the US. Its stated next products are a plug-in solar-and-battery system for homes and the full 'Energy Network' off-peak rewards rollout.
Sources
- Founded by former Revolut executives, Britain's Fuse Energy secures €59 million to scale energy operations
- London's Fuse Energy secures €25 million Series B extension as it plans 32,000 sq ft London HQ
- Fuse boss attacks planning rules as a 'self-imposed bottleneck for growth'
- Fuse Energy hits $5B valuation after $70M from Balderton and Lowercarbon
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