BOXT secures £20m as it looks to overhaul UK domestic heating market

British smart home systems installer BOXT has raised £20 million in a fresh round of funding, as it hopes to accelerate plans to overhaul the UK domestic heating market.

The latest round was led by Brookfield, one of the largest global investors in infrastructure.

With its sights set on improving heating efficiency and installing smart home solutions to anyone in the country, BOXT will use the cash injection to spur UK growth, whilst also supporting the government’s pledge to cut UK emissions by 80% by 2050.

Born out of a belief that the heating industry wasn’t fair on consumers, founders Mel Butler, Andy Kerr and Keith Jones launched BOXT in 2017, developing a unique digital platform to simplify and democratise the process for homeowners.

In less than four years the Leeds headquartered technology company, which offers consumers an uber-style service for fitting boilers, electric vehicle chargers and air conditioning with accompanying smart home devices such as thermostats, smoke alarms, cameras and speakers has successfully disrupted the home heating installation market, becoming Britain’s second-largest boiler installer, providing services to over 100,000 households nationwide.

The business is on course to grow its customer base to over 300,000 households by 2025 and with the new funding, the business aims to double its workforce in the next 18 months and double its number of engineers to 6,000 by 2023.

“The company has continually delivered double-digit growth since 2017” said BOXT Founder and CEO, Andy Kerr

‘’Bucking the trend of the traditional UK heating industry, we’ve achieved over 50% underlying sales growth despite the challenging economic circumstances throughout the COVID 19 pandemic ’’

“We’ve invested significantly in technology that creates a smooth customer journey, reducing waste and additional journeys for both customers and engineers.

“The latest round of funding will enable us to continue to expand and provide our energy-efficient and optimisation products like Google Nest as well as fuel-saving technologies to our customers such as electric vehicle charging as well as hydrogen-powered boilers and heat pumps.

“We are delighted to have Brookfield as our partner, as one of the largest energy and infrastructure investors in the world. We know they will bring a wealth of knowledge into the business and together, we see an incredibly ambitious future of growth for BOXT.”

Brookfield Managing Partner, Sikander Rashid said: “The U.K. home heating market is expected to experience accelerating change over the next few decades in response to progress in technology and regulation”

“Having rapidly gained the trust of thousands of consumers, we believe BOXT is well-positioned to continue to grow its market share, given the attractiveness of the online offer combined with the scalable and flexible business model.”

DC Advisory have acted on behalf of BOXT as their corporate finance advisors with Pinsent Masons acting as legal advisors. Squire Patton Boggs have acted as the BOXT founders’ legal advisors.

Brookfield’s advisory team included LEK as commercial advisors, EY as Software and IT advisors with Farrer & CO acting as their legal advisors. KPMG have advised on Financing & Accounting, with Grant Thornton acting as tax advisors and Marsh completing the team as their insurance advisors.