The online platform making green energy ownership affordable and accessible for everyone.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.rippleenergy.com |
| Sectors | Energy Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 10565718 |
| Incorporation date | 16 Jan 2017 |
Business highlights
- £2.4m revenue to date*
- 15,000 memberships
- Two largest co-op equity share raises in history
- Gearing up to expand into Europe
Key features
Learn more about convertible campaigns.
Idea
Introduction
Ripple is the green energy ownership platform enabling households and businesses to co-own wind farms and solar parks. Ripple aims to revolutionise the energy sector, enabling consumers to benefit from low cost, hassle-free asset ownership direct.
Ripple members get the low cost, stable priced green power produced for the project's 25-40 year lifetime, with savings applied straight to their electricity bills. It's super simple.
Due to recent high prices, owners of Ripple's first wind farm saved on average £340 off their electricity bills in its first year of operation. They are set to save around £970 in its second year. Ripple has shown green energy ownership can protect consumers from energy price spikes like the one experienced over the last two years.
Having proven the model in the UK, Ripple is now planning to expand into other European markets. It also plans to increase brand awareness in the UK as well as develop B2B2C offerings.
Substantial accomplishments to date
15,000 MEMBERSHIPS
Ripple has secured over 15,000 memberships with a further 14,000 reservations for future projects. Ripple's platform, built by its inhouse tech team, enables a low cost per acquisition and cost to serve. Its online community has over 10,000 members.
NEARLY £80M WORTH OF PROJECTS LAUNCHED
Ripple's first 3 projects total 63MW and are expected to generate enough electricity to meet the needs of 40,000 households and save 54,000 tons of CO2 each year by displacing coal and gas power.
Membership Growth Graph
£2.4M REVENUE SECURED TO DATE*
The vast majority of Ripple's revenues are from arrangement fees charged when customers buy their shares. Management fee revenue will increase as more projects start generating.
TWO LARGEST COOP SHARE RAISES IN HISTORY
Kirk Hill, Ripple's second wind farm project raised over £13m in co-op equity, the largest coop equity share raise in UK history. Derril Water, Ripple's first solar park raised around £20m, knocking Kirk Hill of the top spot.
*Based on unaudited management accounts
4.7* TRUSTPILOT REVIEWS
People love Ripple, as demonstrated by its fantastic Trustpilot scores and repeat purchase rate of 38% (for customers who were not already at their ownership limit).
AWARD WINNING BUSINESS AND PROJECT
Ripple won the Scottish Renewables Technology and Business Innovation award 2023 and Graig Fatha wind farm won the 2023 Green Business Award for Renewable Energy Project of the Year. Ripple was also crowned Seedrs Startup of the Year in 2019 and Sarah won Entrepreneur of the Year 2021.
Monetisation strategy
Ripple has two primary revenue streams - an arrangement fee on share purchases and a management fee during the operational life of each project.
ARRANGEMENT FEE
To date this has ranged from 4.2% to 7% plus VAT. The arrangement fee covers our marketing costs, legal and platform costs as well as our project team costs during the construction phase. We plan to increase the arrangement fee for future projects.
MANAGEMENT FEE
We charge between 0.15p/kWh and 0.2p/kWh as a management fee, around £7 per member per year. It is included in the project's operating cost, not paid separately. It covers our platform costs, customer support and co-op admin. We see scope to increase the fee for future projects. For businesses this could be via enhanced dashboard services.
SWITCHING FEE
We plan to charge our supply partners a switching fee for members we switch to them. During the energy crisis switching rates fell considerably. We expect to begin to charge switching fees in 2024.
Use of proceeds
MARKETING
We plan to use the funds to raise awareness of Ripple, securing more customers for the projects we hope to launch in 2024. We have an out of home and radio advertising campaign planned and are also preparing a TV campaign.
NEW MARKET PREPARATION
We are growing the team with hires in new propositions, product and analysis. These roles will help support our exploration of new markets and the development of new propositions and partnerships.
AHEAD OF SERIES A ROUND
We aim to complete a Series A investment round in 2024 to secure funds to undertake our market entry into 2 European markets.
This convertible round will enable us to:
- research the market requirements in our target markets
- engage with European utilities and project developers
- refine our product offering to fit the new markets
Once we have laid the ground for new market entry the aim is to use the Series A investment to establish Ripple in our chosen markets.
Key Information
Convertible Key Terms
This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".
The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.
• Discount: 20%
• Valuation Cap: £28,000,000
• Conversion is triggered by ("Trigger Events"):
- An Equity Fundraise – defined as the Company raising investment capital of at least £2,500,000 from one transaction or a series of transactions, in exchange for the company issuing of shares;
- A Change of Control of the company (transfer of more than 50% of the share capital); or
- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• If a Trigger Event occurs, the ASA will convert at the lower of:
- the lowest price paid per share in connection with the Trigger Event, discounted by the Discount; and
- the Valuation Cap divided by all issued shares and outstanding options and equity interests in the Company, discounted by the Discount.
• Longstop Date: 6 months from signing of instrument. (note: this will be after the campaign closes).
• If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is:
- a price per share based on a company valuation of £18,400,000.
•The convertible would also convert to equity at the Default Share Price in the event of winding up or liquidation of the company.
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