Hometree closes £36.7m equity raise and acquires green home improvement financing platform

As the energy crisis continues to paint a bleak picture across the economic landscape, London-based residential energy services provider Hometree has secured $46m (£36.7m) in equity funding to help millions of homeowners enjoy sustainable living by offering low carbon energy solutions in the home.

The fundraise was led by specialist energy & sustainability investors 2150 & Energy Impact Partners, alongside Legal & General Capital - the alternative asset platform for Legal & General Group - the £1.4trn financial services & asset management giant.

Returning investors Inven Capital, the energy fund backed by Czech Utility CEZ Group, Oxford Capital, & FJ Labs are joined for the first time by impact fund AENU and angel investor Frank Strauss – the former Deutsche Bank board member & CEO of Deutsche Postbank AG.

Hometree, now one of the largest challengers to British Gas and HomeServe in the UK home cover market, is primarily focused on helping customers protect their essential energy assets in the home from breaking down.

To complement this service, founder and CEO, Simon Phelan’s vision is centred on creating a brighter - and more sustainable - future for homeowners, introducing a services model that includes installation, financing and maintenance of renewable energy solutions in the home.

Simon Phelan, CEO of Hometree, said: “This funding round and acquisition of BeWarm marks a significant new chapter for Hometree, enabling us to deliver on our long-held vision of building 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.”

BeWarm, the latest business to be acquired by Hometree, was founded in 2018 by Rory Duff, ex strategy director at HomeServe and CFO of renewable financing business EcoVision, and Matthew Boyes, ex Founder of StreetLife, the UK local social network that was acquired by NextDoor in 2017.

Governments around the world are setting ambitious targets for decarbonising housing stocks, and technologies such as heat pumps, solar PV and batteries are increasingly making economic sense as the cost of energy continues to rise.

John Bromley, managing director – Clean Energy Strategy at Legal & General Capital said “We are delighted to invest in Hometree as it enters this new chapter of growth, positioning itself as a leader in home decarbonisation solutions.”

By Mark Adair – Correspondent, Bdaily

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