Switchee, a London-based technology startup, has raised £5 million in funding to further its mission of improving living conditions in social housing. This investment round saw participation from new investor Octopus Ventures and existing investor AXA IM Alts. The funding is set to bolster Switchee’s innovative solutions aimed at tackling mould, reducing heating bills, and enhancing communication between tenants and landlords.
Switchee, founded in 2015 by Adam Fudakowski, develops internet-connected thermostats that measure humidity, temperature, and pressure. These devices collect and analyse data to provide actionable insights to social housing providers. The primary goal is to create healthier living environments by preventing mould growth and lowering energy consumption. Switchee’s technology also helps landlords maintain better communication with tenants, which is crucial for addressing issues promptly and efficiently.
The thermostats are designed to be user-friendly and integrate seamlessly into existing housing infrastructure. They offer real-time data on various environmental parameters, enabling proactive maintenance and reducing the likelihood of issues such as dampness and poor air quality. The devices can lower heating bills by up to 17%, a significant saving for tenants, many of whom may be struggling with fuel poverty .
Switchee’s solutions are particularly relevant in the context of social housing, where maintenance issues can have severe implications for residents’ health and wellbeing. The company’s technology has been instrumental in identifying and preventing mould, a common problem in older and poorly ventilated buildings. Mould not only damages property but also poses serious health risks, especially for vulnerable populations such as children and the elderly.
The tragic case of Awaab Ishak, a toddler who died from exposure to mould in his rented flat in Rochdale, Manchester, underscores the critical need for effective solutions like those provided by Switchee. By offering a data-driven approach to maintenance, Switchee helps landlords address potential issues before they escalate, ensuring safer living conditions for tenants .
With this latest £5 million investment, Switchee plans to accelerate its growth and expand its reach. The company aims to install its technology in one million UK social housing units. Currently, Switchee’s devices are used by over 130 social housing providers, and the company has been doubling its revenues year-on-year for the past three years. The new funding will also support advancements in areas such as smart meter data integration and heat pump compatibility, further contributing to environmentally sustainable social housing .
Tom Robins, CEO of Switchee, expressed his enthusiasm about the new investment, stating: “The fleet of Switchee devices across the UK, delivering in excess of 16 billion data points each year, sees us leading the charge in working with social housing providers to beat some of the UK’s most difficult challenges: the continued cost of living crisis, the rise in fuel poverty, and the battle to decarbonise our housing stock. I truly believe that through these partnerships, we have a huge opportunity to improve the quality of life for millions” .
Both Octopus Ventures and AXA IM Alts have expressed strong support for Switchee’s mission and technology. Edward Keelan, Partner at Octopus Ventures, highlighted the alignment of Switchee’s goals with Octopus Ventures’ focus on investing in companies that drive significant social and environmental impact. He stated: “We’re excited to be joining Switchee on their journey. At Octopus Ventures, we want to back entrepreneurs who share our values, and Switchee is a fantastic example: whether that’s their focus on helping to build a sustainable planet, improve social housing, or their status as a B-Corp. We’re looking forward to being part of what comes next” .
Similarly, Jonathan Dean, Head of Fund Management – Impact PE & Natural Capital at AXA IM Alts, emphasised their continued support for Switchee. He said: “This latest funding represents our continued support to Switchee and belief in its mission to improve the lives of underserved communities and make the world more resilient to the effects of a changing climate. We are excited to support Switchee as it continues to grow its impact, leading the delivery of data-driven solutions to enhance the energy efficiency of social housing and in delivering much needed social and environmental change” .
Switchee’s technology is set to drive a significant shift in the social housing sector by introducing a new operating model that relies on proactive maintenance and real-time data. The company’s devices provide the richest dataset in social housing, which can be used to identify patterns and predict potential issues. This proactive approach not only improves living conditions for tenants but also helps housing providers manage their properties more efficiently and cost-effectively.
The integration of Switchee’s devices into government-funded initiatives like the Social Housing Decarbonisation Fund (SHDF) further underscores the importance of their technology. These initiatives aim to improve the energy efficiency of social housing, reduce carbon emissions, and alleviate fuel poverty. Switchee’s tools are well-suited to support these goals by providing precise data that can guide decision-making and optimise resource allocation .
Switchee’s commitment to sustainability extends beyond their immediate product offerings. The company is dedicated to continuous innovation and research to enhance its technology’s impact. Future developments will focus on integrating smart meter data, enhancing compatibility with heat pumps, and exploring new ways to reduce the environmental footprint of social housing.
The company’s status as a B-Corp reflects its broader commitment to social and environmental responsibility. B-Corps are businesses that meet high standards of social and environmental performance, accountability, and transparency. Switchee’s B-Corp status highlights its dedication to balancing profit with purpose, ensuring that its growth benefits all stakeholders, including employees, customers, and the broader community .
Switchee’s recent £5 million funding round marks a significant milestone in its journey to revolutionise the social housing sector. By leveraging advanced technology to tackle critical issues such as mould and fuel poverty, Switchee is poised to make a lasting impact on the lives of millions of people. The support from investors like Octopus Ventures and AXA IM Alts not only provides the financial backing needed to scale up operations but also validates Switchee’s innovative approach and social mission.
As Switchee continues to expand and enhance its offerings, it stands at the forefront of a movement to create healthier, more sustainable living environments. With its data-driven solutions, the company is well-positioned to lead the charge in transforming social housing and setting new standards for quality and efficiency in the sector. For more information, visit Switchee’s official website.