London based energy transactions scale up tem has secured $75 million in an oversubscribed Series B funding round, marking a significant milestone in its ambition to rebuild how energy is bought, sold and priced. The raise brings tem’s total funding to $94 million and comes as the company surpasses $300 million in annualised gross transaction value, signalling growing momentum behind its AI native approach to a traditionally opaque and inefficient sector.
The round was led by global venture fund Lightspeed Venture Partners, with strategic follow-on participation from Hitachi Ventures, Voyager Ventures, Schroders Capital and Allianz. Existing investors AlbionVC, Atomico and Revent also took part. As part of the investment, Lightspeed partner Paul Murphy has joined tem’s board.
Rebuilding energy transactions from the ground up
For decades, business energy markets have relied on outdated infrastructure, characterised by complex contracts, hidden fees and embedded risk premiums. These inefficiencies often inflate energy bills and limit transparency for businesses and energy producers alike. tem is positioning itself as the first AI-native company to tackle this problem at its core, aiming to do for energy what fintech platforms once did for payments and banking infrastructure.
Rather than layering new brands or interfaces on top of legacy systems, tem is rebuilding the transaction layer itself. Its platform replaces fragmented processes with a single, end to end solution that removes inefficiencies and redistributes value back to businesses and generation owners.
Two layers powering a new energy model
At the heart of tem’s technology is Rosso, an AI-powered transaction engine that executes energy contracts end to end. Rosso is designed to strip out hidden costs, optimise pricing and automate decision making across the transaction lifecycle. As transaction volumes grow, Rosso continuously learns from a deepening pool of market data, unlocking further pricing innovation over time.
Built on top of this infrastructure is RED, tem’s neo-utility interface. RED provides businesses and brokers with a modern platform to contract, buy, sell and manage energy more transparently. Enabled by Rosso’s structural price advantage, RED allows users to access lower energy costs while simplifying what has historically been a complex and manual process.
Rapid growth and real world impact
In 2025 alone, tem has facilitated more than 2 terawatt hours of energy transactions, roughly equivalent to powering the city of Liverpool for an entire year. The platform now serves over 2,600 customers across the UK, including high profile organisations such as Boohoo Group, Fever Tree, Silverstone Circuit and Newcastle United FC.
According to the company, tem can reduce business energy bills by up to 30 percent, a level of savings that incumbents struggle to match due to their reliance on legacy infrastructure. As customer numbers and transaction volumes increase, tem expects its AI models to deliver even greater efficiencies.
Scaling the infrastructure beyond tem
While Rosso currently powers tem’s own RED interface, the company’s longer term vision is broader. tem plans to make its transaction infrastructure available to incumbents and emerging neo utilities, enabling simpler and smarter transaction fulfilment across the entire market. By doing so, tem aims to create a level playing field where new energy brands and market participants can compete without inheriting legacy complexity.
International expansion on the horizon
The new funding will also support tem’s first steps beyond the UK. The company plans to prioritise expansion into Texas and Australia, markets where it is already in discussions with supply and demand side customers seeking more efficient transaction infrastructure. Additional international markets are expected to follow.
Energy as the next economic battleground
Investor interest in energy technology has intensified as volatility, electrification and the rapid growth of data centres reshape global demand. Electricity consumption from data centres alone is projected to rise sharply by 2030, adding pressure to secure affordable and reliable energy at scale.
Joe McDonald, CEO and co-founder of tem, said the company is focused on setting a new global standard for how energy is transacted. He described tem’s mission as rebuilding the core infrastructure of energy markets to make them fairer, more transparent and radically more efficient, while enabling a new generation of energy companies to emerge.
With fresh capital, growing transaction volumes and plans to expand internationally, tem is positioning itself to become foundational infrastructure for the next era of global energy markets.