Singapore startup raises $30m to let you buy electricity on the blockchain

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Electrify, a Singapore-based startup that aims to use a blockchain to let consumers buy electricity from energy retailers and other consumers, has raised US$30 million in under 10 days via a token sale, the company said in a press release on Wednesday.

It claims that over US$1.3 billion was pledged towards the startup, which means that it did not accept over US$1.27 billion in funding.

The funding came from both institutional and individual investors, the company said. Of these investors are prominent VCs like Global Brain and cryptocurrency Ethereum’s co-founder, Wendall Davis. The funds raised will be used to expand into other markets including Southeast Asia, Japan, and Australia.

“Countries across Southeast Asia are starting to liberalize their electricity markets,” said Julius Tan, CEO and co-founder of the energy startup.

Electrify CEO Julius Tan

In April 2018, Singapore will officially deregulate its electricity market in two phases. The deregulation in the city-state will mean both individual and business consumers will now have the option to “buy electricity from retailers […] under price plans that best meet their needs,” said Singapore’s Energy Market Authority (EMA), the government agency overseeing the lion city’s energy market.

Phase one will allow 108,000 local consumers and 9,500 businesses to have access to a wider selection of retailers providing electricity, on top of Singapore Power (SP Group) — the only company consumers could buy from prior to the deregulation. Phase two begins after June, and will include consumers island-wide.

The year-old Electrify uses a proprietary engine and a blockchain to collect and display retail electricity offers. This helps consumers stay more informed about the choices they have.

According to the company, since operation, Electrify has helped Singapore’s businesses save upwards of US$554,000 in electricity bills. It has transacted US$3.79 million worth of electricity since March 2017. Because Electrify operates by blockchain technology, it reduces the cost of being a middleman between consumers and retailers.

“Built on the tenets of the blockchain, our solution will drive down operating costs, ensure the transparency of contracts, and also speed up and streamline contract validation and auditing,” said Electrify’s COO and co-founder, Martin Lim.

The startup credits its traction to the liberalization of Singapore’s energy market and the surging global interest in blockchain technology.

In December 2017, the same year Electrify was founded, the first cryptocurrency cafe launched in Singapore. The cafe deals only with cashless payments via credit cards, using its own digital currency called Ducatus. Singapore’s government agencies like the Monetary Authority of Singapore (MAS) recognize the impact the blockchain might have on the financial industry and is planning to use it for record-keeping purposes.

Converted from Singapore dollars. US$1 = S$1.32.

This story is developing. Check back later for the full version.

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from Tech in Asia https://www.techinasia.com/singapore-startup-raises-30m-buy-electricity-blockchain
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