Bulb Energy last night faced speculation it could be taken over by rival renewable supplier Octopus.
The loss-making start-up, which supplies around 1.7million UK customers, is racing to secure new funding as crisis engulfs the energy sector. Bulb, which is backed by tech fund DST Global and US hedge fund Magnetar, could raise cash from investors or merge with another supplier, according to reports.
Incognito: Prime Minister Boris Johnson on a visit to Bulb Energy earlier in the summer
In recent weeks it has opened a 'data room' to allow a range of potential investors to review its finances, advised by investment bank Lazard.
The potential takeover by Octopus, first reported by Sky News, comes after soaring wholesale energy prices sent six energy suppliers to the wall in recent weeks, affecting around 1.5million households. It is estimated just six to ten suppliers could be left by the end of the winter.
Bulb, founded in 2015 by Hayden Wood and Amit Gudka, made a £63million loss in the year to March 2020 after investing in rapid growth. It is the sixth biggest supplier in Britain with a six per cent market share.
Bulb said: 'From time to time we explore various opportunities to fund our business plans and further our mission to lower bills and lower CO2.'
Octopus did not respond to requests for comment.