Target Information

Kamma is a prominent UK-based property data and analytics company specializing in providing comprehensive insights aimed at achieving Net Zero emissions in the property sector. Through advanced geospatial technology, Kamma acquires, integrates, and calibrates a vast array of property data points, empowering both residential and commercial property sectors to strategize effectively for climate sustainability. The company's innovative property data engine generates accurate and timely climate data, which serves as a critical resource for addressing diverse climate challenges.

Recently recognized with Green Homes Finance Accelerator funding for its work in retrofit optimization, Kamma is distinctive as the only tech firm in the UK offering a complete market proposition. Its capabilities enable it to precisely measure the total emissions footprint of residential properties, catering to the specific retrofit requirements of stakeholders like landlords, housing funds, mortgage lenders, and energy companies.

Industry Overview in the UK

The UK property sector is the second-largest contributor to greenhouse gas emissions in the country, with buildings and construction accounting for approximately 25% of total emissions, according to the British Property Federation as of October 2022. This sector also faces challenges in decarbonisation, often hindering progress toward Net Zero targets. The outdated and inaccurate nature of property data remains a significant obstacle, impeding correct assessments and leading to misguided decisions in property management.

With the ongoing demands for sustainability, there is an emerging recognition of the need for improved data tools that can streamline the decarbonisation process. Kamma’s advanced data engine addresses this need by utilizing numerous data sources to ensure the accuracy and reliability of climate-related information. This assists property owners and managers in establishing effective Net Zero strategies, contributing significantly to the overall effort to mitigate climate change.

Recent advancements in technology and climate-focused policies have given rise to a more dynamic property market in the UK, with an increasing number of stakeholders committing to sustainability goals. However, the property sector must overcome its historical inertia, where many practices have not adapted to the requirements of modern environmental standards. Kamma's innovative solutions are poised to impact the market positively by facilitating data-driven decision-making.

As this industry metamorphoses, there is considerable potential for technology-driven firms to lead the charge towards greener practices. Kamma's focus on climate change solutions and retrofit optimization is a response to this growing need, enabling the firm to serve as a valuable partner in the transition to a sustainable future.

Rationale Behind the Deal

The investment of £3.6 million led by Clean Growth Fund allows Kamma to accelerate its development and expansion of critical data-driven solutions aimed at meeting Net Zero targets in the property sector. This funding will enhance Kamma's capabilities and empower the company to extend its services to the commercial property sector, a key area in the journey towards sustainable building practices.

Furthermore, with the support from experienced investors and industry leaders, Kamma can leverage its unique technology and market position to expand its influence and operational capabilities. The funding solidifies Kamma’s ability to address existing barriers to decarbonisation, ultimately propelling the UK property sector towards more environmentally responsible practices.

Information About the Investor

Clean Growth Fund was established in 2020 to support the UK's most promising early-stage clean technology companies. With a focus on sustainability, Clean Growth Fund invests in firms that foster innovative solutions to combat climate change. Kamma represents the fourteenth investment in the clean tech sector by the fund and the third within the buildings and property domain, underscoring their commitment to promoting advancements in this critical area.

Susannah McClintock, an Investment Partner at Clean Growth Fund, emphasizes the significant impact that Kamma can have on facilitating Net Zero goals across the built environment. The firm is dedicated to empowering companies like Kamma that are making meaningful contributions towards climate action, ensuring that they can grow rapidly and effectively play their part in tackling the pressing challenges of climate change.

View of Dealert

The investment in Kamma by Clean Growth Fund presents a strategic opportunity with high potential for future profitability and impact. Kamma's unique technology positions it at the forefront of the necessary innovation needed to overcome the challenges faced in the UK property sector regarding emissions. This alignment means that Kamma stands to benefit immensely from the increasing regulatory and social pressures to decarbonize.

Additionally, Kamma’s ability to quantify emissions and provide tailored retrofit solutions sets it apart in a space where accurate data is crucial. This could enhance Kamma's market share and relevance as stakeholders increasingly seek reliable partners to help them navigate the complexities of transitioning to Net Zero. Given the slow pace of the sector's decarbonisation and outdated property data, Kamma’s innovative approach is timely and essential.

Moreover, with the backing of reputable investors such as Clean Growth Fund, Kamma is not only poised for growth but also for establishing itself as a thought leader and a key player in the UK’s green transition. This investment, in conjunction with the company's technology, bodes well for Kamma becoming an instrumental asset in meeting sustainability targets.

In summary, the investment in Kamma is a strong move, reflecting confidence in both the firm’s technology and the overarching necessity for actionable climate data solutions. The foresight of Clean Growth Fund in supporting Kamma could potentially enhance investor value while contributing positively to the ongoing battle against climate change.

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