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Kaluza's Market Value Hits $500 Million After Major Australian Investment

AGL Energy, one of Australia's premier energy suppliers, has made a substantial $100 million equity investment in Kaluza, a UK-based energy software platform, valuing the company at half a billion dollars. This strategic investment grants AGL a 20% stake in Kaluza and builds on a collaborative relationship initiated in 2021.

This partnership, revealed yesterday, involves a comprehensive multi-year licensing agreement through which AGL will implement Kaluza's innovative software across its operations, targeting four million customers in Australia. This technological integration is projected to generate significant financial efficiencies, with AGL anticipating annual pre-tax cash savings between $46 million and $60 million starting in 2029.

Kaluza, launched in 2019 by entrepreneur Stephen Fitzpatrick—who also founded OVO Energy—focuses on reducing operational costs for energy utilities. It achieves this through automating customer services and managing an increasing array of smart energy devices, crucial for advancing toward zero-emission grids. Kaluza manages over six million meters through OVO Energy in the UK and has broadened its reach into multiple global markets, including Japan, Europe, and the US.

With this latest funding round, one of the most significant in the energy-tech sector to date, Kaluza's market valuation has soared to approximately $500 million, underscoring this technological advance's substantial impact and potential in the energy sector.

Fitzpatrick said the fresh investment was "a major step towards Kaluza's mission to help power a world where net zero is within everyone's reach".

"Australia is ahead of the curve in tackling the intense demands on its energy system - from the most volatile energy prices to the proliferation of electric vehicles (EVs) and incorporating solar into the grid," he said.

"The AGL teams have been able to witness first-hand the transformational impact of the Kaluza platform. Today's announcement confirms that Kaluza is best placed to help global energy companies manage these challenges - at the same time as continually improving customer experiences."

AGL Energy's managing director and CEO Damien Nicks said the deal represented a "significant milestone in our transformation journey to connect more customers to a sustainable future".

"Our world-class technology, enabled by Kaluza and alongside other industry partnerships, will allow us to develop a future suite of simplified products that will seamlessly integrate into the lives of our customers and improve their experience," he said.

"The technology market is changing materially with the emergence of new core utility platforms offering greater flexibility and speed, which makes it imperative to partner with industry leaders, and is why we have chosen Kaluza. The Kaluza platform will enable new product innovation at speed whilst at the same time materially reducing operating costs for AGL's customer business in the future."


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