This round follows a 400 million yen ($3.5 million) investment from Energy & Environment Investment and TSE-listed Hitachi in February 2016. With this, the aggregate funding raised by the firm has touched $7.9 million.
Following its deregulation in April 2016, the Japanese electricity industry has seen the entry of corporates like Softbank and Rakuten establishing subsidiaries to tap this market.
Launched in April 2015, Enechange offers a power supplier switch service for enterprises and SIM card comparison site for companies and consumers. It has also partnered with UK-based SMAP Energy to offer consulting services for electric companies in Japan.
Previously, Japan’s market for electricity retail to small-scale users was dominated by 10 major power companies that monopolised their respective regions. The deregulation has led to more than 300 new entrants to the power retail market from various non-electricity sectors, including companies like SoftBank and Tokyo Gas.
With most customers of the new suppliers concentrated in the greater Tokyo area and the Kansai region, this limited number of market entrants may serve to limit the growth prospect of Enechange.