UK Tech Startup Secures £5M to Fight Mould in Social Housing
A UK-based technology startup, Switchee, has successfully raised £5 million in a new funding round. The company’s mission centers on leveraging technology to combat the prevalent issues of mould and high heating costs in social housing.
Switchee’s technology measures humidity and temperature with the aim of preventing mould and lowering heating bills. Photograph: Andy Griffin/Switchee
This investment, split equally between existing investor Axa IM Alts and Octopus Ventures, aims to build on a previous £6.5 million funding round from May 2023. With this infusion of capital, Switchee is targeting the installation of its monitoring technology in one million social housing properties across the UK. The company’s technology measures humidity, temperature, and pressure, analyzing the gathered data with the goal of preventing mould, lowering heating expenditures, and generally improving communication between tenants and their landlords. Its current user base includes over 130 social housing providers.
The quality of social housing has gained increased attention, particularly following the tragic death of Awaab Ishaak, a two-year-old, in Rochdale in 2020. The child’s death was linked to prolonged exposure to mould in his rented flat.
Tom Robins, the CEO of Switchee, acknowledged the tragedy, stating, “There is a continual trend here of setting a much higher bar of expectation in housing standards, and we’re seeing landlords embracing that and looking for technology solutions that they can deliver a more efficient, effective service.”
Robins described the recent investment as a “real milestone.” He elaborated, “We see there is a moment as social housing in the UK moves from a reactive to a proactive model. There’s clearly the demand and challenges, so we wanted to make the most of that.”
The company seeks to rectify what it sees as an “injustice,” where those able to afford heating costs have access to technology that can reduce their expenses, while individuals unable to afford the bills are excluded from such advantages.
Sharing an example, Robins described a situation where Switchee’s device helped locate a damp home where a single mother and her daughter were forced to live in the lounge and kitchen due to a collapsed bedroom ceiling. He stated, “They had been evicted for complaints in the past so they were terrified to tell their new landlord. The property was then gutted and redone completely.”
The technology also helps reduce the environmental impact of home heating and has been employed in government-funded ventures, such as the Social Housing Decarbonisation Fund.
Robins revealed that Switchee’s revenue has doubled for the past three years and reached £10 million in the most recent financial year. “We are for-profit but our focus is on scale rather than profit,” he said.
Edward Keelan, a partner at Octopus Ventures, said that the company was drawn to Switchee’s B Corp status and its focus on social housing and the environment.
Co-founded by Adam Fudakowski and Ian Napier in 2015, Switchee’s devices have been installed in 35,000 homes to date. Robins expressed the ambition to reach the target of one million homes “in the next five to 10 years.”
Robins paid tribute to Ian Napier who died in 2019. “His belief in this drive for change is a very important part of the DNA of the business. We wouldn’t be here today without him,” he concluded.
