A British startup which uses technology to prevent renters from living in cold, damp homes has raised fresh funds to expand as landlords belatedly try to tackle outbreaks of mould in crumbling social housing.
Switchee has secured £5m, split equally between an existing investor, Axa IM Alts, and Octopus Ventures, part of the group which includes household gas and electricity supplier Octopus Energy.
The company hopes to use the funds – which come on top of a £6.5m investment round led by Axa in May 2023 – to help hit a long-term goal of installing its technology in 1m UK social housing properties.
Switchee’s technology, which is used by more than 130 social housing providers, measures humidity, temperature and pressure and analyses data with the aim of preventing mould and lowering heating bills, as well as improving communications between tenants and landlords.
The quality of social housing has been in the spotlight since the death of Awaab Ishak, a two-year-old who died in 2020 after exposure to mould in the rented flat where he lived in Rochdale.
Tom Robins, the chief executive of Switchee, said the toddler’s death was an “absolute tragedy”. “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,” he said.
Robins said the investment represented a “real milestone” moment. “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.”