Greentech startup Luthmore closes £4.5m from The FSE Group and South West Investment Fund
This article covers Luthmore, a greentech startup, which has closed a £4.5m investors funding round to accelerate commercial rollout of its battery-enabled, zero-emissions Luthmore One boiler. The funding is intended to support deployments in UK homes, expand the startup’s sales and operations team, and advance low-carbon heating for small to medium homes.
Luthmore, a greentech startup based in the South West, has closed a £4.5m investors funding round from existing backers including The FSE Group and allocations via the South West Investment Fund (SWIF). The cash will accelerate commercial rollout of its battery-enabled, zero-emissions Luthmore One boiler—which the company says is now being installed in UK homes—and funds hires to build out sales and operations.
Why it matters
Heating domestic buildings is a major source of UK carbon emissions and replacing gas combi boilers is central to the country’s decarbonisation goals. Luthmore’s product sits in a contested market that includes heat pumps and other electric heating solutions; securing capital and regulatory assessments puts the company a step closer to wider consumer adoption. The funding also signals continued regional investor interest in greentech businesses outside London, where deployment and installer training are often cited as barriers to faster uptake.
Inside the product
Luthmore One is described by the company as a battery-enabled electric boiler intended as a zero-emissions alternative to the gas combi boiler for small to medium homes. The business says the unit has passed an SAP assessment—a technical rating used in the UK to measure the energy performance of dwellings—and that it has developed an installer training programme to support field rollout.
The company has begun home installations from its Chippenham base and is recruiting commercially, including a new chief financial officer role to manage funds and scale sales. These practical steps—accreditation, installer training and early deployments—are the kinds of milestones that can reduce friction for adoption among installers, specifiers and consumers.
Who are the investors?
Funds came from existing shareholders, notably The FSE Group, alongside support routed via the South West Investment Fund (SWIF). The tie to SWIF frames this as part of a regional push to back early commercialisation activity in the South West.
Ralph Singleton, Head of Equity South West at The FSE Group, said:
Luthmore is a great example of the innovative businesses we want to support in the South West. The team has made significant progress in developing its technology and is now entering an important stage as it looks to build commercial momentum and bring the Luthmore One to more UK homes. We’re pleased to continue our support and to be part of the company’s next phase of growth.
Alex Weedon, enterprise innovation director at Connected Places Catapult, said:
Through the scale-up programme, we'll help founders with direct introductions to investors for access to capital. We’ll also connect them with growth specialists who can help them tackle the challenges that often hold businesses back from scaling. Over the next six months, we'll work closely with each company to strengthen their growth plans, open up new opportunities and help accelerate their path to market.
The company has also been selected as one of five UK businesses for Connected Places Catapult’s Innovate UK-funded Scale-Up Support Programme, which will provide introductions to investors and growth specialists as part of its support.
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Founder perspective
Luthmore was founded in 2022 by Craig Wilkinson and Martin Gutkowski, both former Dyson engineers. The founders’ background at Dyson is relevant given that company’s engineering focus and experience commercialising complex home appliances.
CEO Herve Deherang, said:
Luthmore is growing quickly, and we are grateful to both our long-term investors, and new partners, for their faith in the product, and the business. It’s so encouraging that our technology is being recognised at every level – from investors, business innovation groups, technical accreditors, installers, specifiers, and now, within government. This is a truly exciting chapter in Luthmore’s story, and we are building a strong commercial team to support this next stage – recognition from consumers, and adoption of the Luthmore One into UK homes.
Marcus Quarterman, the newly appointed CFO who previously worked as financial director at Prolectric Ltd and in commercial teams at Dyson and PwC, said:
Part of my role at Luthmore will be ensuring these most recent funds are optimally allocated, to drive commercial success and encourage further investment that will accelerate our scale up.
Quarterman’s background at Prolectric (a renewables firm) and experience at Dyson and PwC suggest a mix of operational, product and financial skills aimed at moving the company from prototype to volume sales.
The bigger picture
The deal highlights a continuing flow of capital into greentech solutions aimed at household heating, driven by the need to meet net-zero commitments and by supply-chain and installer challenges that have slowed heat pump adoption. Regional funding vehicles such as SWIF, together with sector-specific support from innovation bodies, are increasingly important for moving pilots into early market rollouts outside major tech hubs.
For policymakers and investors watching the heat market, Luthmore’s progress—technical accreditation, on-the-ground installer training and early installations—will be a useful case study in how new low-carbon heating technologies transition from lab to living room. The outcome will matter for UK efforts to decarbonise homes and for the investor community assessing which technologies can scale commercially across Europe.
They've invested in Luthmore
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