Energy markets often feature unclear contracts, high fees, and outdated systems, which increase business costs by masking risks and inefficiencies.
As data centres, AI, and electrification are expected to drive a 165% increase in demand by 2030, London-based tem is updating the sector with AI-based infrastructure. Their platform automates clear transactions, reduces costs by up to 30%, and offers a modern neo-utility interface.
Today, tem raised $75 million in an oversubscribed Series B round led by Lightspeed Venture Partners, and Paul Murphy will join the board. Other investors include Hitachi Ventures, Voyager Ventures, Schroders Capital, AlbionVC, Atomico, and Allianz, bringing total funding to $94 million.
In 2025, tem handled $300 million in annual gross transaction value and 2 TWh for more than 2,600 UK customers, including Boohoo, Fever-Tree, Silverstone, and Newcastle United FC.
Make energy transactions fair, clear, and efficient for everyone
In 2021, co-founder and CEO Joe McDonald teamed up with Jason Stocks, Bartlomiej Szostekm, and Ross Mackay, who had seen many ineffective solutions in utility and trading systems.
tem founders share with TFN, “tem is rebuilding the transaction infrastructure that underpins the whole industry, essentially doing for energy what fintech did for banking – by creating a market that can operate transparently, efficiently and at scale.”
Rosso AI engine removes fees and automates contracts, while RED is a neo-utility interface for buying, selling, and managing energy with better pricing. Key features include full transparency with no hidden costs, up to 30% savings through data-driven pricing, and benefits from growing transaction volumes, now managing 2 TWh each year.
“On top of that sits RED, tem’s exclusive neo-utility. This is the user-facing platform that gives business and brokers access to tem’s transaction infrastructure, in turn unlocking transparency and price innovation for energy users. Eventually, this technology will become the infrastructure that existing energy companies, neo-utilities and new brands can adopt to unlock fairer, more efficient transactions on a global scale,” elaborate tem founders.
Unlike traditional brokers and utilities that rely on outdated systems, tem has rebuilt its core infrastructure to scale for today’s needs. Its main competitors are Enel X, which works on global energy management, and Octopus Energy, which focuses on the UK retail market.
What’s next for tem?
The $75 million investment will help tem grow in the UK and launch in Texas and Australia, where efficient transactions are needed. Soon, tem plans to make Rosso available to more companies and expand its data pool for better pricing.
“Over the next three to five years, tem will continue to roll out its transaction infrastructure on a global scale, empowering not just business and brokers, but incumbents and new entrants at every level of the market,” tem funders conclude.
TFN contacted tem for comment regarding diversity and inclusion; no response was received at the time of publication.
