Minnow electricity retailer Flick Electric Co has grown its customer base almost 300% since its launch in August last year, and recently raised $5million in new capital.
Last week, customer savings of the Wellington-based company topped $1million, with 6700 customers now signed up.
Flick uses smart meters for its customers to access the wholesale price of electricity direct from the spot market, then charges a separate retailer's fee.
Flick's chief executive, Steve O'Connor, said the recent $5million investment was significant for an early stage technology business and to expand in its existing markets.
‘‘We have been on solid growth mode this year. We have tripled our staff, moved to new premises, and last week we ticked over the $1million customer savings mark,'' he said in a statement.
Customers' average savings are 18% on their power bills, or $360 a year per household.
Since launching in Dunedin in mid-May, Flick's customer base here stood at 218 consumers.
Flick expected savings of more than $5million in the year ahead, he said.
About 25% of the new capital came from existing shareholders, plus individuals, institutions and the Eastland Group took a cornerstone 11.1% stake, for about $2million.
‘‘Their [Eastland] commitment to their community is very philosophically aligned for us, and their expertise in energy is a great strategic fit,'' Mr O'Connor said.
Gisborne-based Eastland, which has assets of $385.7million, runs the electricity network, the port and airport and is about to start construction of a geothermal power plant near Kawerau.
Its stake is about $2million.
Flick now has 33 shareholders, with around a third of the participants in the 2014 capital-raising also participating in the latest round, Mr O'Connor told BusinessDesk.
The company claims annual turnover of about $14 million, of which almost $2 million is its daily and electricity usage flat fees.
It has yet to become profitable, although the company was tracking to plan, Mr O'Connor said. - Additional reporting: BusinessDesk.
