London-based Axle Energy has raised $25 million in Series A funding led by Energize Capital. Existing investors Accel, Picus Capital and Eka Ventures also participated in the round.

The company, founded in 2021, uses AI and machine learning to optimize energy trading and grid management. Axle's platform helps energy companies predict demand patterns and optimize renewable energy integration.

Axle previously raised a $7 million seed round in 2023 backed by Accel, Picus and Eka, which also attracted former Tesla executives Elon Musk and Drew Baglino as advisors and board members at Axle Energy.

The startup's CEO says the funding will help accelerate international expansion as renewable energy becomes more complex to manage, which the team sees as both an opportunity and a challenge for the sector.

Axle specializes in using machine learning models to predict energy demand patterns and help energy companies optimize their renewable energy portfolios. The company claims its algorithms can reduce energy waste by up to 30% compared to traditional grid management systems.

Why Accel doubled down

The Series A represents Accel's continued commitment to the energy transition space. Partner Zhenya Loginov said the firm is actively seeking more energy-focused investment opportunities.

"We've seen a real transformation over the past few years," said Loginov. "We have the best of UK tech combined with the engineering capabilities needed, and with Axle and others, we're seeing real transformation."

Loginov noted that while the energy sector has been traditionally slow to adopt new technologies, AI and machine learning are creating opportunities for startups to build more efficient systems.

Energize Capital, a Boston-based investor at Accel and at Axle since early stages, called Axle a "tremendous opportunity" in energy optimization.

"The energy market and climate needs of Europe have created huge opportunities in the space," the investor said. The shift towards carbon-neutral EU tech policies and more international regulatory changes in the market is driving demand for optimization tools.

Axle plans to use the funding to expand internationally beyond Europe, particularly targeting markets with high renewable energy adoption rates like Germany and the Netherlands.

The company will also invest in R&D to develop new AI models for different energy sources and grid management challenges across various regulatory environments.