Gentrack buys Factor in NZ$24m energy software deal
Tue, 19th May 2026 (Today)
Gentrack has acquired Wellington energy software start-up Factor for NZ$24 million, with a potential NZ$10 million earnout.
Factor, formally Prospero Energy, develops artificial intelligence-based forecasting and pricing software for energy retailers. Its tools are used to design commercial tariffs for large energy users, including arrangements that account for batteries, micro-generation and electric vehicle demand.
The acquisition gives Gentrack control of a young company founded by Jessica Venning-Bryan and Simon Pohlen, both previously involved with Flick Electric Co. and Flux Federation. Factor launched its product last year and quickly signed its first customers in Australia and the UK.
The deal reflects growing demand from energy retailers for software that can manage more complex pricing models as power systems become more decentralised. Retailers are facing greater volatility as distributed generation, storage and shifting electricity demand put pressure on existing market structures.
Factor's software focuses on forecasting and tariff design, two areas retailers increasingly see as central to commercial decision-making. The product is designed to replace manual models, legacy systems and custom code with a modular platform that connects with customer relationship management, billing and data systems.
Energy retailers serving commercial, industrial and agricultural customers operate in a large and complex market. Large businesses consume about 70 per cent of global electricity, with close to US$1 trillion transacted each year across those sectors, according to Factor.
That backdrop has drawn investor interest to newer software providers in the energy sector. Factor raised an oversubscribed NZ$3.22 million pre-seed equity round led by Icehouse Ventures, with support from Motion Capital, K1W1 and Angel HQ. At the point of sale, the business was predominantly New Zealand-owned.
Venning-Bryan said utilities are under mounting pressure as electricity systems change.
"There is more pressure on energy utilities than ever before to respond to the rapid changes in how the world uses electricity. Growth in distributed generation and storage, rising demand for electricity, and transmission systems stretched for capacity have driven volatility across developed energy markets," said Jessica Venning-Bryan, Co-founder and Chief Executive of Factor.
She said the company saw a strong response after launch.
"Factor helps energy retailers thrive in this environment. When we took Factor to market in June last year, we were met with an overwhelmingly positive response and quickly onboarded our first customers in Australia and the UK. We knew immediately we had built something special," Venning-Bryan said.
She also linked the sale to the company's longer-term goal in energy pricing.
"Our ambition has always been to transform how utilities price energy, creating real fiscal incentives for electrification and demand response. We've built the product to do that. Now, with Gentrack behind us, we can get it into the hands of the companies that need it most," Venning-Bryan said.
Gentrack Chief Executive Gary Miles said pricing has become increasingly important for retailers operating in volatile energy markets.
"Pricing is one of the most critical capabilities for retailer success in today's volatile energy markets. From the moment I saw Factor's technology and met Jessica, I knew this was the company that would bring great value to both Gentrack and our customers. We are delighted to welcome the entire Factor team and will be introducing them to our customers as early as next week," Miles said.
The wider energy software market has been shaped by decarbonisation, decentralisation and digitisation, increasing the number of variables retailers must reflect in customer offers and operational planning. For utilities and retailers, more accurate pricing and forecasting are becoming more closely tied to margins, customer retention and product development.
The purchase also underlines a broader shift in utility technology spending, as companies invest in systems that support faster decision-making and more responsive tariffs. In that context, tariff design is shifting from a specialist function to a core part of the digital systems used to run modern energy retail businesses.