Toronto-based cleantech startup EnergyX Solutions, which produces software to help businesses and consumers improve energy efficiency, has raised $1 million CAD, bringing the company’s total funding to date to $5 million.
“This recent round of financing will be instrumental in further accelerating our growth in North America and beyond.”
– Nishaant Sangaavi
The financing was led by BDC Capital’s Growth and Transition Capital division, and was invested in the form of non-dilutive capital. The funding will be used to accelerate EnergyX’s expansion into the United States.
Founded in 2016, EnergyX raised $1.3 million in a round led by Globalive Capital in September 2018, which Nishaant Sangaavi, CEO and co-founder of EnergyX Solutions, told BetaKt recently was a seed round. EnergyX also secured a separate $500,000 in January 2019 as well as an additional $500,000 in July 2019.
The $1 million round is essentially a seed extension. Sangaavi told BetaKit that the additional capital is also intended to extend EnergyX’s runway to see the company through the COVID-19 pandemic. The CEO noted that the startup wants to focus on penetrating the US market, as well as ramping up sales and marketing before raising a Series A round.
“We anticipate 2020 will see the company expand our reach further within California and execute multi-year licensing deals with utilities in the untapped states of Louisiana, Arizona, Mississippi, and Rhode Island,” Sangaavi said.
EnergyX first revealed plans to expand to Atlantic Canada and New England in 2018 when the startup raised its $1.3 million seed round. The startup currently offers its solution in California, Massachusetts, Washington DC, Ohio, Delaware, Michigan, and Pennsylvania.
An alumnus of The DMZ, L-Spark, and the Creative Destruction Lab, EnergyX aims to help utilities and energy retailers with MyEnergyXpert, its online platform designed to boost customer engagement in energy-efficient programs.
“Energy efficiency remains the most cost-effective option to meet our climate change goals and support people who are battling high energy costs,” Sangaavi said. “We are excited to welcome BDC Capital as an investor in EnergyX. This recent round of financing will be instrumental in further accelerating our growth in North America and beyond.”
Through machine learning, EnergyX identifies, targets, and enrolls customers with high energy savings potential in EnergyX’s utility energy efficiency programs. Customer communication and tracking are then streamlined through an active dashboard that also offers insights into program performance.
EnergyX claimed the COVID-19 pandemic created an “unprecedented need” for transformation in the utilities market. Sangaavi told BetaKit the startup had seen an increased “openness” from utilities organizations in embracing a digitized work environment and encouraging their customers to lower their energy costs using technology.
“We were able to license our platform to Energy New England during the pandemic and were able to do this without having the need to have face to face meetings,” Sangaavi added. “If there is anything this pandemic has taught us, it is that climate change and energy efficiency continues to be of paramount importance.”
EnergyX’s team is currently made up of 25 employees in Toronto and Halifax. The startup told BetaKit it did not furlough or lay off any staff members during the pandemic.
“This latest round of funding will help us continue to scale and grow the team and is testament to the validity of our technology and the impact energy efficiency has in meeting our global climate commitments,” said Sangaavi.
Image source Unsplash. Photo by Alexander Popov.