London-based energy transactions scaleup tem has secured $75 million in an oversubscribed Series B round to accelerate the rollout of its AI-native infrastructure and expand internationally. The round, led by Lightspeed Venture Partners, brings tem’s total funding to $94 million and follows the company surpassing $300 million in annualized gross transaction value. The investment positions tem to pursue its ambition of becoming the “Stripe of energy” by modernizing how energy is bought and sold.
Backing from Global Investors
The Series B was led by Lightspeed Venture Partners, with strategic follow-on participation from Hitachi Ventures, Voyager Ventures, Schroders Capital, and Allianz. Existing investors including AlbionVC, Atomico, and Revent also participated in the round. As part of the transaction, Paul Murphy, Partner at Lightspeed Venture Partners, joins tem’s board.
The raise comes at a time when investor focus on energy technology is intensifying amid market volatility, electrification trends, and surging demand from data centers and AI infrastructure. With global electricity demand from data centers projected to rise sharply over the coming decade, securing affordable and efficient energy procurement is becoming central to economic competitiveness. Investors view transaction infrastructure as a critical leverage point within the broader energy value chain.
Reinventing Energy Transactions
For decades, energy pricing and trading have relied on complex and opaque systems that embed fees and risk premiums into long-term contracts. These inefficiencies often increase costs for businesses while limiting transparency across the wholesale market. tem aims to address these structural flaws by rebuilding the transaction layer itself using AI-native technology.
The company’s infrastructure is anchored by Rosso, an AI-powered transaction engine designed to automate and optimize energy contracts from end to end. Rosso removes hidden costs and inefficiencies embedded in traditional deal structures, enabling a more transparent and streamlined process. Built on top of this infrastructure is RED, a neo-utility interface that allows businesses and brokers to contract, buy, sell, and manage energy through a modern digital platform.
Growth and Market Traction
In 2025 alone, tem facilitated more than 2 terawatt-hours of energy transactions, equivalent to powering the city of Liverpool for a year. The company now serves over 2,600 customers across the UK, including Boohoo Group, Fever-Tree, Silverstone Circuit, and Newcastle United FC. tem states that its model can reduce business energy bills by up to 30 percent by leveraging structural price advantages embedded within its infrastructure.
Currently, Rosso exclusively powers the RED interface, but tem plans to open the infrastructure to incumbents and emerging utilities as it scales. By enabling broader market participants to plug into its transaction engine, the company aims to create network effects that further enhance pricing efficiency and data-driven optimization. As transaction volumes increase, Rosso’s expanding data pool is expected to unlock additional pricing innovation.
International Expansion and Vision
The new capital will also fund tem’s first international expansion, with Texas and Australia identified as priority markets. The company is already in discussions with supply and demand partners in these regions, where energy market volatility and scale present significant opportunities. Additional markets are expected to follow as the company builds a global footprint.
tem was founded in 2021 by Joe McDonald, Jason Stocks, Bartlomiej Szostek, and Ross Mackay, who previously scaled and exited energy firm Limejump. CEO Joe McDonald argues that the real opportunity lies in rebuilding core infrastructure rather than launching incremental utility brands. He describes tem’s approach as analogous to fintech’s transformation of banking, where foundational systems were redesigned to enable rapid innovation on top.
As electrification accelerates and AI-driven industries demand increasing amounts of power, the infrastructure underpinning energy transactions is becoming a strategic battleground. tem’s $75 million Series B underscores investor confidence in AI-native systems that promise greater transparency, efficiency, and affordability. By targeting the transaction layer itself, the company aims to set a new global standard for how energy is bought and sold in the digital era.