Fuse Energy Secures £50M at £3.7B Valuation to Accelerate Vertically Integrated Clean Energy Model
December 18, 2025
London-based Fuse Energy has closed a £50 million ($70 million) funding round led by Balderton Capital and Lowercarbon Capital, pushing the company's valuation to £3.7 billion ($5 billion) in just its third year of operation. Additional participants in the round include QuantumLight, the venture firm founded by Revolut founder Nik Storonsky, alongside returning investors from Fuse's earlier raises. The capital will fund international expansion into Ireland, Spain and the United States, as well as accelerating the launch of new consumer products.
The energy sector's structural inefficiency has persisted for decades. Traditional retail energy suppliers sit at the end of a fragmented value chain — buying wholesale power, managing customer relationships and billing — while the generation, trading and infrastructure layers are handled by separate entities, each extracting margin. This fragmentation drives up consumer costs and slows the pace at which new technology can be deployed across the system. Fuse Energy was built from the outset as a direct challenge to that model, arguing that only by controlling every stage — from building renewable assets to trading power to supplying households — could a company operate with the efficiency needed to materially lower prices at scale.
Founded in 2022 by Alan Chang and Charles Orr, both former senior executives at Revolut, Fuse operates what it describes as a full-stack energy company. Its vertically integrated model spans renewable site construction, power generation, energy trading, household supply, EV charger installations and consumer hardware. By eliminating handoffs and margin leakage between those layers, the company is able to deliver electricity at prices it says average around 10% below incumbent suppliers, saving the typical household up to £200 per year. The company has also developed The Energy Network, a demand-flexibility system that rewards customers for shifting consumption to off-peak periods, enabling Fuse to balance its own generation profile and reduce wholesale procurement costs. Forthcoming consumer hardware — including a micro solar and battery kit — extends the model further into behind-the-meter energy management.
By December 2025, Fuse had reached approximately $400 million in annualised revenue, growing around eight times year-on-year to reach cash-flow-positive status, and already supplies power to more than 200,000 UK households. The company raised a $78 million seed round in 2022 and a $10 million follow-on in mid-2025 as it entered the gas market, meaning this raise brings cumulative disclosed funding to approximately $158 million. The backing of Balderton — a first investor since Fuse's pre-seed — and Lowercarbon Capital, the climate-focused fund led by managing partner Clay Dumas, reflects sustained conviction in the vertical integration thesis as demand for clean, affordable power intensifies alongside the rapid growth of AI infrastructure.
Balderton partner Daniel Waterhouse cited Europe's need for sustainable, scalable and resilient power as AI accelerates energy demand, describing Fuse as rebuilding the energy system from first principles in a way that is vertically integrated and engineered for scale. Lowercarbon Capital's continued reinvestment underlines its view that a verticalised energy company can be more profitable than asset-light alternatives — a counterintuitive but increasingly validated position as Fuse's operational metrics strengthen quarter by quarter.
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