UK startup Switchee has announced a £5 million investment from Octopus Ventures and alternative asset classes investment manager AXA IM Alts. It follows a £6.5 million investment financing led by AXA IM Alts, secured in May 2023.

The data insights and technology company, which holds B-Corp status, provides tens of thousands of devices for more than 130 social housing providers, helping keep homes warm, safe and sustainable for residents. This includes helping identify and prevent mould in homes, lowering heating bills by up to 17 per cent, and improving communications between residents and providers through a two-way platform.

Its chief executive, Tom Robins, said: “The fleet of Switchee devices across the UK, delivering in excess of 16 billion data points each year, sees us leading the charge in working with social housing providers to beat some of the UK’s most difficult challenges: the continued cost of living crisis, the continued rise in fuel poverty, and the continued battle we share to decarbonise our housing stock. I truly believe that through these partnerships, we have a huge opportunity to improve the quality of life for millions.”

The poor and sometimes dangerous condition of the country’s social housing stock was highlighted by the death in 2020 of Awaab Ishak, a two-year-old who died from a respiratory condition after acute exposure to mould in the flat his family rented in Rochdale.

Awaab’s Law was introduced a year ago this month under the Social Housing (Regulation) Act, compelling social landlords to act on any reported health hazards, including damp and mould, within strict time frames.

In a blog posted on Switchee’s website, Kate Roberts, its customer success director, noted that the introduction of Awaab’s Law had sparked concerns among social housing landlords, particularly around resource allocation, legal ramifications, first-time access to residents’ homes, and the nature and complexity of the repairs required. Roberts underlined the importance of investing in engagement and customer relations.

“Switchee’s communications functionality is proving to be an effective solution for this,” she said. “Our smart, in-home device, which is already being used by over 130 social housing providers, offers a means of two-way communications. This feature enables direct communication between residents and providers via an in-home display, which sees 88 per cent of residents respond within the first 24 hours. It’s making it easier for residents to report hazards in homes and ensure they remain engaged every step of the way.”

She continued: “Our Internet of Things technology also goes beyond communication, offering a proactive and practical means for landlords to tackle damp and mould, with innovation at its heart. It allows housing providers to proactively monitor housing stock conditions. With Switchee’s real-time property data and actionable insights, the risk of mould is identified early on, driving social housing landlords to act before the presence of mould poses a threat to human life.”

The technology company also plans advancements in Switchee’s Trusted Installer Network, unlocking the supply chain and deploying its devices at scale through government-funded initiatives, such as the Social Housing Decarbonisation Fund.

Noting the increasing focus on social landlord responsibilities, Adam Fudakowski, founder and executive director of Switchee, said: “With social housing providers increasingly needing to demonstrate the safety of homes and quality of service they provide, this funding will help us further accelerate our scaling to ensure we can do more for our customers.”

He continued: “Switchee’s digital tools are proven to reduce energy consumption and our actionable insights empower landlords to achieve their decarbonisation strategies. With this funding, we’ll continue to develop our offerings in areas such as smart meter data integration and heat pump compatibility, to create even more positive social and environmental change.”

Edward Keelan, partner at Octopus Ventures, said: “At Octopus Ventures, we want to back entrepreneurs who share our values, and Switchee is a fantastic example: whether that’s their focus on helping to build a sustainable planet, improve social housing, or their status as a B-Corp. We’re looking forward to being part of what comes next.”

Jonathan Dean, from AXA IM Alts, added: “This latest funding represents our continued support to Switchee and belief in its mission to improve the lives of underserved communities and make the world more resilient to the effects of a changing climate.”