Hometree raises $46m and branches out with BeWarm deal

12 Apr 2023

Hometree CEO Simon Phelan. Image: Hometree

The challenger company has grown significantly in the past 12 months and aims to be ‘the leading residential energy efficiency platform across Europe’.

Hometree, the Irish-founded energy services provider, has raised $46m and acquired financing platform BeWarm for an undisclosed amount.

The oversubscribed Series B round was led by specialist energy and sustainability investors 2150 and Energy Impact Partners, alongside Legal & General Capital.

New investors were impact fund Aenu and angel investor Frank Strauss, a former board member of Deutsche Bank. Returning investors for this round included Inven Capital, Oxford Capital and FJ Labs

Hometree, founded by Dubliner Simon Phelan, offers services to help homeowners upgrade their energy hardware and prevent it from breaking down. The UK-based company said its core services have trebled over the past 12 months, organically and through M&As.

The company currently covers tens of thousands of homes and has a network of 5,000 engineers to support its customers. CEO Phelan’s vision is to create a services model that includes the installation, financing and maintenance of residential renewable energy.

Phelan said the latest funding round and the BeWarm deal – Hometree’s biggest acquisition to date – marks a “significant new chapter” for the company and enables it to build “the leading residential energy efficiency platform across Europe”.

“The recent energy crisis has shown that we can’t remain reliant on foreign gas to heat and power our homes, and Hometree has a key role to play in helping homeowners transition to a more safe, stable and affordable energy system,” Phelan said.

BeWarm is a point-of-sale financing platform, which partners with local installers to offer various financing plans to homeowners. This includes heat lease plans, where homeowners can upgrade to an energy efficient boiler or heat pump with nothing paid upfront.

Hometree said the acquisition of BeWarm is subject to regulatory approval, but both companies expect to close the transaction by the end of the second quarter of 2023.

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Leigh Mc Gowran is a journalist with Silicon Republic