London-based Axle Energy has raised $25m (£18.7m) in a Series A funding round to scale its virtual power plant (VPP) software platform across the UK and international markets.
Founded in 2023 by former Bulb executive Karl Bach and data scientist Archy de Berker, Axle Energy develops a software platform that integrates distributed home energy assets such as electric vehicle (EV) chargers, domestic batteries, and heat pumps directly into electricity markets.
By aggregating these decentralised assets, the platform coordinates energy usage to help utilities, fleet operators, and original equipment manufacturers (OEMs) balance grid supply and demand, reducing the reliance on fossil-fuel generation during peak times.
The company currently manages more than 300,000 connected devices, representing over 2GW of flexible capacity.
Axle plans to use the capital injection to expand its partnerships and tap into an estimated 75 million eligible energy assets across Europe and the US.
“AI and electrification are increasing electricity demand at a pace that power systems were not designed for,” said Karl Bach, CEO and co-founder of Axle Energy.
“Virtual power plants unlock capacity from infrastructure that already exists, bringing flexible capacity online in weeks rather than years.”
The Series A transaction follows a $9m (£6.7m) seed funding round led by Accel in August 2024, as well as a £1.3m pre-seed round in 2023.
The funding round was led by US-based energy software investor Energize Capital. Existing investors Accel, Picus Capital, and Eka Ventures also participated in the round.
“As AI, electrification and renewable energy accelerate, power systems are becoming more dynamic and more complex,” said Zhenya Loginov a partner at Accel.
“We believe flexibility will become one of the most important layers of the modern energy stack. Karl, Archy, and the Axle team have built an impressive platform that helps energy companies unlock and monetise flexibility from assets that already exist.
“With more than 300,000 connected devices and over 2GW of capacity already under management, they have established themselves as one of the leaders in this category, and we’re excited to continue supporting their growth.”
