Energy

Budderfly Energy Efficiency as a Service Business Examined

In this Research Note, we examine Budderfly, the US Energy Efficiency-as-a-Service (EEaaS) company focused on Small and Medium-sized Enterprises (SMEs) and franchise businesses. This analysis covers their business model, funding, majority ownership, growth and outlook for 2024. Founded in 2007 and headquartered in Shelton, Connecticut, Budderfly implements proprietary energy intelligence software, energy-efficient technology upgrades that span more than 25 savings categories, and IoT devices that meter, control, and optimize energy usage at the point of consumption within each facility across the enterprise. With no cost to its clients, Budderfly finances projects in USA and Canada, specializing in repeatable footprint businesses with a major focus on food service such as Quick-Service Restaurants (QSR) and family dining, C-Stores, YMCAs, medium-sized colleges and Prep Schools, and nursing homes. Budderfly’s Efficiency-as-a-Service model provides up-front funding for building energy audits, project design, commissioning, new equipment, and maintenance. The 10-year contract covers ongoing maintenance and is structured to be paid by […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

In this Research Note, we examine Budderfly, the US Energy Efficiency-as-a-Service (EEaaS) company focused on Small and Medium-sized Enterprises (SMEs) and franchise businesses. This analysis covers their business model, funding, majority ownership, growth and outlook for 2024.

Founded in 2007 and headquartered in Shelton, Connecticut, Budderfly implements proprietary energy intelligence software, energy-efficient technology upgrades that span more than 25 savings categories, and IoT devices that meter, control, and optimize energy usage at the point of consumption within each facility across the enterprise.

With no cost to its clients, Budderfly finances projects in USA and Canada, specializing in repeatable footprint businesses with a major focus on food service such as Quick-Service Restaurants (QSR) and family dining, C-Stores, YMCAs, medium-sized colleges and Prep Schools, and nursing homes.

Budderfly’s Efficiency-as-a-Service model provides up-front funding for building energy audits, project design, commissioning, new equipment, and maintenance. The 10-year contract covers ongoing maintenance and is structured to be paid by resulting energy cost savings. Additionally, Budderfly offers 10-year solar contracts and community solar connections.

Budderfly Funding

Edison Partners first invested in the company in June 2017, when it led an initial $22 million financing round. Later, they participated in follow-on rounds where Budderfly raised an additional $55 million in June 2019. Edison Partners exited its portfolio company when Partners Group invested in the company in July 2022.

Total funding for Butterfly amounted to $84.5 million, before the acquisition by Partners Group.

Acquisition of a Majority Stake

In July 2022, Partners Group, a Swiss-listed private markets firm (PGHN:SWX), acquired a majority equity stake in Budderfly and committed further growth capital totalling more than $500 million. Partners Group aims to transform Budderfly into a multi-billion-dollar infrastructure platform by investing to expand its customer base and solutions offering.

Budderfly Energy Efficiency

Partnerships

In March 2023, Budderfly, announced a high-volume contract with Carrier, to deploy more than 2,000 of Carrier’s most efficient commercial packaged rooftop units to small and medium-sized businesses across America, primarily fast food, quick service and casual dining restaurants. This agreement will enable Budderfly’s customers to start saving and accelerate the reduction of their carbon emissions.

In December 2023, the company announced a strategic partnership with Fujitsu General America, Inc. (“FGAI”), a subsidiary of one of Japan’s leading providers of air conditioning equipment to develop and deploy high-efficiency energy technologies for mid-market businesses across the United States.

Under the terms of the agreement, Budderfly will leverage FGAI’s AIRSTAGE Variable Refrigerant Flow (VRF) Systems as the core component for its Ultra High Performance (UHP) heating, ventilation, and air conditioning (HVAC) architecture. The state-of-the-art heat pump and ventilator-separated system is the most advanced HVAC solution specifically designed for the approximately 94% of U.S. commercial buildings under 50,000 square feet.

Growth

Budderfly has grown its portfolio of customer sites from about 2,750 to more than 5,000 businesses across the United States since July 2022. The company has also added more than 100 employees in recent months with LinkedIn reporting 227 employees.

According to the CEO, Budderfly was on track to generate more than $100 million in revenue in 2023, roughly double what it earned in 2022. And is forecasting to double revenues again in 2024, to more than $200 million.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.

Most Popular Articles

SPIE
Energy

SPIE Technical Facility Management Business 2024 Examined

This Research Note examines the French public company, SPIE and its focus on building solutions, which is one of four strategic markets that the group addresses in central and northern Europe. This article covers the Group’s fields of expertise, its development since 2013 through platform and bolt-on acquisitions and its expansion in the Netherlands, based […]

Infogrid Acquicore Lawsuit
Smart Buildings

Infogrid Faces Lawsuit over 2022 Acquisition of Aquicore

Established in 2018, UK-based smart building firm Infogrid quickly made a splash in the market, picking up a range of high-value customers including banks, supermarkets, and restaurant chains, as well as the UK’s National Health Service (NHS) during the peak of the global pandemic. The firm has attracted $135.5m in investment (including debt financing) from […]

IWMS Spacewell Nemetshek 2023
Smart Buildings

Spacewell Smart Buildings Business & Financials 2023 Examined

In this Research Note, we examine Spacewell, part of the Manage segment of Nemetschek, which provides software for the management and operations phase in the building lifecycle. This article is based on their 2023 annual results, investor presentations, Annual Report of the parent company, published on 21st March 2024 and the group’s strategy in the […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy