UrbanVolt raises €26m to fund European expansion

Irish energy business UrbanVolt has raised €26 million from specialist investor Verdane to fund further European expansion.

Dublin-based UrbanVolt finances and installs solar panels for industries, selling the electricity generated to them at up to 40 per cent discounts to traditional power suppliers. Its customers include brewer Heineken and pharma giant Pfizer.

The company said on Thursday that it has raised €26 million from specialist European investment firm, Verdane, in exchange for shares in the Irish business.

Neither party revealed the size of the stake that Verdane is taking in UrbanVolt, but it is understood to be a small majority holding.

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The Irish business will use the cash to fund further expansion in the Irish, British and wider European markets.

Verdane’s investment means UrbanVolt has raised more than €200 million in debt and equity to date.

In a statement, the energy business said the cash came at a “critical juncture” in the European solar market, which is poised to double by 2030 and more than quadruple by 2050.

UrbanVolt maintains that it leads its section of the market, dubbed “solar-as-a-service” after signing deals with more than 150 customers between the Republic and Britain.

The Irish company agrees power purchase deals with customers that allow them to access solar energy without the upfront expense of buying the equipment.

It says this approach allows customers to lock in cheap electricity for up to 30 years, safeguarding themselves against volatile energy costs and interest rate hikes, while guaranteeing stable power supplies.

Kevin Maughan, UrbanVolt’s chief executive and co-founder, said securing investment from Verdane marked a pivotal moment for the business as it prepared to expand in Europe.

“This investment will not only fuel our continued growth in the Irish market but also empower us to bring our innovative solar solutions to businesses across the UK and Europe,” he added.

Reed Snyder, principal at Verdane, noted that UrbanVolt’s service aligned with the firm’s focus on backing “decarbonisation-oriented” businesses.

“We are delighted to partner with UrbanVolt and support their ambitious expansion plans,” he declared.

Verdane manages more than €4.5 billion worth of investments and has backed 150 ventures since 2003.

The firm primarily backs organisations focused on cashing in on the opportunities presented by the push to decarbonise and digitise business and industry.

Mr Maughan, Declan Barrett, UrbanVolt’s chief commercial officer, and Graham Deane, its chief operating officer, founded the company in 2015.

It has businesses in Ireland, the United States, UK, and eight continental European countries.

High-profile clients include Heineken, Pfizer, medical device maker Zimmer Biomet and logistics multi-national Syncreon. UrbanVolt maintains its approach particularly benefits small and medium-sized businesses.