Bulb Energy Faces Speculation It Could Be Acquired by Competitive Renewable Energy Supplier Octopus
Bulb Energy faced speculation last night that it could be acquired by competing renewable energy supplier Octopus.
The loss-making start-up, serving around 1.7 million UK customers, is rushing to secure new financing as the energy sector is engulfed by a crisis. Bulb, which is backed by technology fund DST Global and US hedge fund Magnetar, could raise money from investors or merge with another vendor, according to reports.
Incognito: Prime Minister Boris Johnson visiting Bulb Energy earlier this summer
In recent weeks, it has opened a “data room” to allow a range of potential investors to assess its finances, advised by investment bank Lazard.
The potential takeover by Octopus, first reported by Sky News, comes after high wholesale energy prices have sent six energy suppliers up in the air in recent weeks, affecting about 1.5 million households. It is estimated that only six to ten suppliers will be left by the end of winter.
Founded in 2015 by Hayden Wood and Amit Gudka, Bulb made a £63m loss in the year to March 2020 after investing in rapid growth. It is the sixth largest supplier in Great Britain with a market share of six percent.
Bulb said, “From time to time, we explore different options to fund our business plans and continue our mission to lower bills and lower CO2.”
Octopus did not respond to requests for comment.