IFM backs New Zealand energy SaaS platform Tally
IFM Investors has committed approximately NZD 50m (USD 29m) to New Zealand-based energy sector software provider Tally Group alongside existing investors SilverTree Equity and Pioneer Capital.
The company serves over 70 energy retailers across Australia, New Zealand, Japan, the US and the Middle East, offering an integrated suite of software solutions for energy billing, customer management and compliance. It covers the residential, commercial, and industrial segments.
This is the fourth investment from IFM’s AUD 380m (USD 224m) growth fund, which closed at the end of 2022 and targets companies across technology, business services, and healthcare. Selection criteria also include an ability to drive a material reduction in carbon dioxide emissions.
It is also IFM’s second energy software-related deal in a matter of weeks. Last month, it backed Smart Urban Properties Australia (SUPA), a provider of utilities and communications infrastructure. The company brings together sustainable energy and mobility solutions that optimise building performance, fibre internet services, and building access, security, intercom, and automation solutions.
Tally’s contribution to emissions reduction is said to come through the simplification of operations for energy retailers and the empowerment of users to participate in energy transition. Its digital capabilities and energy management functions are intended to smooth energy use patterns, “putting less pressure on the grid and setting the foundation for distributed energy resources.”
SilverTree and Pioneer got exposure to Tally through their acquisition of cloud-based billing solutions provider Agility CIS in 2019. Agility CIS broadened its footprint with the add-ons of software-as-a-service players Znalytics and Webtools Energy, and then merged with Tally in 2021.
The IFM investment, which is expected to close later this month, pending regulatory approval, is intended to bolster Tally’s balance sheet as the company pursues global expansion.
“Energy retailers are seeking new technology solutions and real innovation to grow their business, reduce operational costs and deliver the energy transition underway globally,” said Adrian Kerley, an executive director for private equity at IFM, in a statement.
“We have been closely monitoring the unprecedented change in this space, and the legacy technology that has served energy retailers for so long will not be sufficient for the energy transition. This investment in Tally will help energy retailers drive meaningful change for their clients and accelerate the industry's transition to more decentralised and innovative energy solutions and decarbonisation."
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