A UK-based startup, Domna, has raised £70 million in a funding round led by Leon Capital. This investment marks one of the largest first-time raises for a female-founded team in Europe and aims to address the pressing issue of energy inefficiency in UK homes.
The Energy Efficiency Crisis
Over 18 million homes in the UK, representing more than half of the country's housing stock, suffer from poor energy efficiency. These properties are more susceptible to cold, damp, and mould, highlighting the urgent need for improvement.
Domna's Comprehensive Approach
Formerly known as Hestia, Domna offers a range of services to improve home energy efficiency:
- Assisting landlords in decarbonizing rental properties
- Providing property assessment and purchase advice
- Managing retrofit delivery processes
- Offering on-site improvements such as insulation, glazing, draft proofing, and renewable energy system installations
- Utilizing proprietary software for energy efficiency assessments
The company aims to increase home valuations by 20% after retrofitting and help homeowners reduce energy bills by 40%.
A New Trend in European Startups
Domna's strategy aligns with a growing trend among European startups, which involves:
- Acquiring and consolidating smaller businesses in various industries
- Deploying proprietary software across acquired companies to scale operations and expand customer base
Strategic Acquisitions and Future Plans
With the new funding, Domna has acquired two retrofit surveying and contracting businesses: The Warmfront Team and Osmosis ACD. These acquisitions strengthen Domna's position in the market and expand its service offerings.
The company plans to use the investment to:
- Pursue further acquisitions in the sector
- Enhance its predictive machine-learning stock assessment tool
Impact and Scale
The combined Domna group now delivers approximately 15,000 domestic retrofits annually, achieving significant carbon abatement and fuel poverty reduction while adding substantial value to residential properties.
This investment in Domna represents a major step towards addressing the UK's housing energy efficiency challenges and reducing carbon emissions in the residential sector.
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