The Descent of Holaluz: From Hope to Disillusionment
Holaluz, the energy company that once boasted of ‘changing the world’ with renewable energy and ‘fair prices’, is on the verge of collapse. After years of broken promises and massive losses, Holaluz is now fighting to avoid bankruptcy.
Since its debut on the stock market in 2019, Holaluz has accumulated more than 43 million euros in losses, while its expenses on advertising, public relations and advisors amount to more than 115 million euros. With a debt of 58.8 million euros, the company is on the verge of pre-bankruptcy.
The Pursuit of Growth at All Costs
Driven by the desire for ‘scalability’ and ‘gaining size’, Holaluz embarked on an aggressive expansion, acquiring Bulb’s Spanish subsidiary in 2021. However, this strategy proved to be a double-edged sword, as the company oversized itself. and went into excessive debt.
Holaluz’s commitment to solar self-consumption also proved unsuccessful, as the market collapsed after the boom of 2022. The company’s photovoltaic panel installation business suffered a 19% decline in 2023, which further aggravated its situation. financial.
Unfulfilled Objectives
Upon going public, Holaluz established ambitious objectives for 2023, which included exceeding one million customers, installing more than 50,000 self-consumption systems and achieving a turnover of more than 1 billion euros. However, the company did not meet any of these objectives.
In 2023, Holaluz’s Ebitda was negative, its sales fell by 33% and its customer base was reduced to around 325,000. The peak number of supply points, which reached 386,548 at the end of 2021, decreased drastically after the closure of the gas marketing business.
The Promise of Renewable Energy and Fair Prices
Holaluz promoted itself as an advocate for renewable energy and ‘fair prices’. However, Facua analyzes have classified its rates among the most expensive in the electricity market. In addition, the company has been sanctioned by the CNMC for irregular contract changes.
Despite its claims of ‘putting the customer at the center’, Holaluz has faced criticism for its lack of transparency and focus on growth at the expense of customer satisfaction.
The Ecosystem of Advisors and Funds
Holaluz’s collapse has highlighted the role of an ‘ecosystem’ of stock advisors, funds and other experts that encouraged the company’s aggressive growth. Sources close to Holaluz believe that this ecosystem contributed to poor decision-making and the company’s eventual failure.
Holaluz shareholders, including the three founders and funds such as Axon and Geroa, now face significant losses as the company’s value plummets.
The Future of Holaluz
The future of Holaluz is uncertain. The company is in negotiations with investors to avoid bankruptcy, but also faces the possibility of an acquisition by a large electricity company. Holaluz’s ‘loyal’ customer base could be attractive to potential buyers.
Holaluz’s collapse serves as a warning to other companies seeking to grow rapidly without a solid financial foundation. It also raises questions about the role of advisors and funds that can encourage unsustainable growth.