Millions of homeowners still rely on outdated, expensive, and environmentally harmful fossil-fuel utilities, despite the rapid evolution of the global energy sector. German home electrification startup 1KOMMA5° is transforming this landscape with a fresh €150 million in pre-IPO funding. This investment accelerates the deployment of their Heartbeat AI, an energy management system offering European and Australian households the most affordable and eco-friendly electricity options.
The new funding, particularly from strategic investor Sabanci Climate Ventures, will boost 1KOMMA5°’s growth and expand its virtual power plant technology. Despite Europe’s recession and declining solar panel and heat pump markets, the company achieved double-digit organic growth. Their turnover rose to nearly €520 million in 2024, up from €450 million in 2023, driven by in-house rather than acquisition-led growth. This resilience demonstrates the strength of their business model amid sector contraction.
Behind 1KOMMA5°: Mission to transform energy for good
Founded in 2021, 1KOMMA5° is led by CEO and co-founder Philipp Schröder, whose bold vision aims to reshape the energy industry from within. Schröder’s goal is to replace traditional utilities by creating the ultimate energy company consumers will ever need.
“With Heartbeat AI, we aim to become the last energy company consumers will ever subscribe to by replacing conventional utilities through AI-based, automated direct electricity procurement, delivering the cheapest and cleanest electricity for decades to come,” says Schröder.
By balancing profitability with sustainability, 1KOMMA5° has navigated economic challenges and regulatory complexities while building a foundation that serves millions through innovation. Unlike traditional utilities and many energy startups, the company charges a flat-rate fee for Heartbeat AI, rather than taking a margin on electricity supply, thereby shifting its revenue toward value-based pricing.
This innovative approach maximises customer savings during volatile market conditions, an advantage that competitors with static tariffs struggle to match. The company’s global workforce of nearly 2,500 shares this vision of democratizing access to affordable, clean energy.
Heartbeat AI: The tech powering smart homes
At 1KOMMA5°’s core is Heartbeat AI, a cutting-edge platform that uses artificial intelligence to optimise real-time electricity generation and consumption. Unlike traditional providers, Heartbeat AI handles direct electricity purchasing for homeowners, securing the lowest possible prices while prioritising renewable sources.
The platform pools flexible energy capacity from households, creating one of Europe’s largest virtual power plants (VPP). Currently managing over 500 megawatts of flexible energy, it enables homes to function more intelligently and sustainably than ever before.
With over 300,000 decentralised, controllable household systems connected, Heartbeat AI benefits from an accelerating data flywheel effect: each new device connection enhances algorithmic optimisation, improving efficiency and personalising energy management at scale.
Outpacing competitors with AI-driven virtual power plants
1KOMMA5°’s strategy distinguishes it from both energy startups and traditional utilities. While other clean energy companies focus solely on hardware or solar panels, 1KOMMA5° combines proprietary AI technology with operational expertise to balance energy supply and demand at scale effectively.
Having raised nearly €400 million and operating debt-free, 1KOMMA5° is supported by leading investors including Hamilton Lane, CalSTRS, Porsche Ventures, G2VP, Eurazeo, and Sabanci Climate Ventures. This backing reflects strong market confidence in the company’s ability to accelerate energy transition by leveraging consumer-generated power and enhancing energy procurement through automation and machine learning.
Their financial health is a competitive advantage, as they remain debt-free, having raised nearly €400 million and a €100 million unused credit line, positioning them well against peers struggling with cash flow challenges.
What’s next for 1KOMMA5°? Scaling up for a clean energy drive
Looking forward, 1KOMMA5° plans to invest over €100 million from 2025 to 2027, primarily to enhance its Heartbeat AI platform and increase software revenue. The company already serves more than 120,000 customers across Europe and Australia, establishing itself as a leader in the growing home electrification market.
As it approaches its IPO, the company delivers a clear message to the energy industry: the future is intelligent, customer-centred, and highly efficient.
