Norwegian software company Utility Cloud has secured €7 million in its first external funding round, as it sets out to modernise the energy sector’s outdated IT systems and expand across Europe.
The round was led by Norwegian fund manager Core Eqty and will be used to build up the team and accelerate international growth.
"The funding will go towards building the organisation and scaling our European presence. Our focus is on expansion and putting a strong team in place," CEO and co-founder Torbjørn Hompland told Impact Loop.
Spotify standards for utilities
Utility Cloud offers a cloud-based billing and customer management platform that is already used by energy providers in Norway, and increasingly in Sweden and Finland. In 2024, the company generated €3.49 million in revenue, cutting its losses from €502,000 the previous year to €301,000.
The timing is right, argues the company, as EU reforms and deregulation open up the electricity market to more competition — and raise the bar for user experience.
"Our customers are no longer compared only with other utilities, but with what they get from Spotify and Netflix. A 1990s billing and CRM system just won’t cut it," Sara Rasmussen, Chief Revenue Officer, told Impact Loop.
Swedish push and beyond
The company entered Sweden last year. As for the next step, the duo won’t yet reveal which new markets are in the pipeline.
"We see potential in the Baltics and Central Europe, where deregulation has moved faster and markets are more receptive to new solutions. But we’re still in an exploratory phase," Rasmussen said.
She added that the challenge is not only technical, but strategic:
"Many utilities in Europe are stuck with outdated systems. Our role is not just to replace the technology, but to help them drive a broader business transformation to increase competitiveness and customer satisfaction."
Founded in 2019, the Oslo-based SaaS business started out with just €88,000 in the bank.
"We burned through it in a year. But we survived, and today we have customers across the Nordics," said Hompland.
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