Birmingham-based Grid Edge, a company developing AI-powered software to reduce carbon emissions and energy costs in commercial buildings, has raised over £2.8M (approximately €3.3M) in funding.
The funding round was led by Mercia Ventures, which was investing from the Midlands Engine Investment Fund II and its own EIS funds.
Mercia Ventures is a proactive venture capital investor that makes equity investments of up to £10M across all sectors, with specialisms in Software, Consumer, Healthcare, and Deep Tech.
Rafael Joseph of Mercia Ventures adds, “Against a backdrop of rising energy prices, Grid Edge helps customers cut costs while achieving their sustainability targets. With future tariff changes set to introduce price fluctuations throughout the day, demand for Grid Edge’s platform will only grow. Tightening carbon reporting requirements will drive further adoption. The business has been building strong momentum, and this funding will empower the team to accelerate growth and scale to the next level.”
Other investors, including Centrica, BP Ventures, and private investors, also participated.
The funding, which is subject to approval under the National Security and Investment Act (NSIA), will enable the company to take on more customers while continuing to develop the platform.
It also plans to expand its 28-strong team by creating 15 new jobs in sales, customer support, and technical roles.
The announcement comes as the company has increased annual recurring revenue (ARR) by 150 per cent in the last year and is on course to almost triple that again within two years.
The UK company is also planning to increase the number of locations from 120 to 400 within the same period.
Grid Edge: Helping commercial buildings cut energy costs and carbon
Grid Edge was founded in 2016 by energy specialists Jim Scott, Dan Wright, and Tom Anderson, who met while working at Aston University.
They were later joined by Richard Moore, who held senior roles at Deloitte in the US, and Paul McCorquodale, who held senior roles at companies including EE and Amber Energy.
The platform collects data from meters, sensors, and building management systems, along with external information like energy prices and weather.
Using machine learning, it analyses workplace operations and energy use, offering recommendations to improve efficiency.
The company reports an average cost and carbon emission reduction of 20 per cent and says that users can see a return on their investment in six months.
Paul McCorquodale, CEO, says, “Our mission is to simplify the complex world of energy and building management systems, empowering building operators to reduce carbon emissions and save money. Our focus on tangible results has led to a huge increase in demand from businesses to join the Grid Edge community. This funding will enable us to welcome more businesses on board, accelerating our growth and extending our reach and impact.”
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