tem, an AI-native energy transactions scaleup, has raised $75 million in an oversubscribed Series B round led by Lightspeed Venture Partners, bringing its total funding to $94 million. Strategic follow-on participation in the round came from Hitachi Ventures, Voyager Ventures, Schroders Capital, and Allianz, alongside existing investors including AlbionVC, Atomico, and Revent. As part of the round, Paul Murphy, partner at Lightspeed Venture Partners, has joined tem’s board.
The investment follows the company surpassing $300 million in annualised gross transaction value and will support its UK growth and international expansion, with Texas and Australia identified as priority markets.
Headquartered in London, tem is building what it describes as the first AI-native infrastructure for energy transactions. For decades, energy pricing and trading have relied on complex and opaque market systems that embed fees and risk premiums within contracts, increasing costs for businesses. tem aims to replace traditional transaction flows with a unified solution designed to eliminate inefficiencies and return value to businesses and generation owners.
The company’s platform consists of two core components. Rosso is an AI-powered transaction engine that removes hidden fees and inefficiencies from energy deals and executes contracts end to end. On top of Rosso, tem has developed RED, a neo-utility interface that enables businesses and brokers to contract, buy, sell and manage energy through a modern digital experience, while benefiting from Rosso’s structural price advantage.
In 2025 alone, tem facilitated more than 2 terawatt-hours of energy transactions across the UK, equivalent to powering all of Liverpool for a year, serving more than 2,600 customers. These include Boohoo Group, Fever-Tree, Silverstone Circuit and Newcastle United FC. The company says it reduces business energy bills by up to 30%, creating a price advantage that improves as transaction volumes and data scale, further enhancing Rosso’s capabilities.
Currently, Rosso exclusively powers tem’s RED interface, which is already used by thousands of businesses and brokers. Over time, tem plans to open its infrastructure to incumbents and neo-utilities, enabling broader market access and simplifying transaction fulfilment across the energy ecosystem.
The new funding will also accelerate tem’s international expansion. The company is in discussions with supply and demand customers in Texas and Australia and plans to enter those markets first, with additional geographies to follow.
The raise comes amid growing investor focus on energy technology, driven by volatility in global energy markets, electrification trends and rapid data centre growth linked to AI. With data centre electricity demand projected to increase significantly by 2030, securing affordable and efficient energy is becoming central to economic competitiveness.
KEY QUOTES
“Energy underpins every industry in the world, and yet no one has succeeded in course-correcting the fundamentally flawed way the markets work. For decades, the industry has tried to patch over the costly inefficiency of energy transactions with new utility brands and new promises. The real opportunity in energy looks a lot like what fintech did to banking: rebuild the core infrastructure, then let innovation explode on top of it. That’s exactly what tem is doing. We’re building the world’s first AI-native infrastructure for energy transactions – making them fairer, more transparent, and radically more efficient. But more importantly, we’re unlocking the next generation of energy companies. Thousands of new brands, neo-utilities, and market participants will be able to plug into tem and compete on a level playing field. This funding allows us to set a new global standard for how energy is transacted – whether that’s powering a warehouse in Manchester, a neo-utility in Texas, or one of the largest utilities in the world.”
Joe McDonald, CEO And Co-Founder, tem
“tem is one of those rare companies whose insight, technology and roadmap to scale all line up. They’ve combined deep market expertise with exceptional engineering, and a plan with global potential from day one. We back a small number of companies each year, and between the clear market demand and the economics of tem’s model, which align perfectly – tem stood out immediately. We’re excited to work alongside them as a true partner as they scale globally.”
Paul Murphy, Partner, Lightspeed Venture Partners
