- OVO hits 500k customers in September 2015 following 300% growth in 2014
- Company reports on investment in growth, industry innovation and senior team as it builds for 1m customers by 2017 and beyond
- Secures £31 million Series A funding
The UK’s leading independent energy provider OVO this week surpassed half a million customers as it reported a year of surging customer and revenue growth in its 2014 financial statement.
Founded in 2009 as an alternative to the Big Six, OVO saw its customer numbers triple from 137,000 at the start of 2014 to 408,000 by year end, fuelled by a major brand campaign and a responsive hedging strategy that enabled it to offer highly competitive tariffs on the back of flat or falling wholesale gas and power prices.
Revenues in the period increased 91% from £171.7m at the end of December 2013 to £326.3m in December 2014. The costs associated with the extensive growth in customers (many of whom joined mid-year and had yet to contribute a full year of revenue), and related investments in OVO’s industry-leading service levels, staff and technology innovation, resulted in an anticipated loss for the year before tax of £37.3m (31 December 2013: £0.1m).
2015 current trading and outlook
So far in 2015, OVO has released a succession of disruptive, customer-focused innovations into the market including:
- The UK’s first pay as you go energy app (PAYG+), consigning the antiquated meter key to history for a traditionally underserved part of the market
- A groundbreaking Communities platform enabling local councils to offer better deals to disengaged customers by becoming energy providers
- A successful challenge to Ofgem, allowing OVO to pay a 3% interest reward on customer’s credit balance
- An aggressive Smart Meter rollout programme seeing the company become the largest installer across all of the independent suppliers with over 90,000 traditional meters converted to Smart
In August 2015 the company closed on £31 million of Series A funding from independent investment firm Mayfair Equity Partners. In September it announced the hiring of eBay’s Sarah Calcott to the new role of Chief Operations Officer.
“2014 was a significant year for our business, where we put all our effort into increasing our customer base. We have continued to invest in the twin engines of innovation and service ahead of growth, so that we can scale fast without compromising on any of the reasons why our customers love us” said CEO and founder Stephen Fitzpatrick.
“Being recognised as the first ever and only Which? recommended provider for energy in the midst of such high growth shows we’re getting the balance right.
“So far in 2015 we have hit the milestone of 500,000 customers whilst maintaining the pace of innovation, investing in making energy ever simpler and more effortless for customers, and continued to consolidate our systems, and further build our team in advance of the next phase of rapid growth.”