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Munich startup building smart thermostats aims to become profitable with new €43M funding

tado funding
Image credits: tado

The climate tech sector has gained momentum and investments have dramatically increased. A record $100 billion was invested in climate tech companies globally in 2021, and it was over $50 billion by Q3 2022. A Munich-based startup, tado° has now raised €43 million to develop intelligent home climate management systems.

The round in the German startup involves new investors such as Trill Impact Ventures, Bayern Kapital, world’s first evergreen cleantech VC Kiko Ventures, and Swisscanto. Using the funds, the company plans to expand its home energy management offerings by combining Smart Thermostats with Time-of-Use energy tariffs. Through these bundled offerings, homeowners can shift their energy use toward cheaper times, resulting in significant savings.

Further, tado° also recently acquired aWATTar GmbH, the pioneer of energy loadshifting and Time-of-Use tariffs. Now that the two businesses have merged, they plan to dramatically scale up their bundled offerings and enable warm homes at the lowest possible costs and CO2 emissions. Moreover, the company plans to introduce a new product line for this market segment this year and expects to be profitable.

Christian Deilmann, co-founder and Chief Product Officer at tado° commented: “As the leader in intelligent home climate management, now is the right time to scale a unique energy management offering that will double down on reducing home’s heating costs and CO2 emissions. We are looking forward to strong partnerships with the newly joined shareholders.”

Dr. Alexander Domin, Partner and Co-Head of Ventures at Trill Impact, said: “We see tado° as an attractive venture case with strong market and impact timing. By leveraging its leadership in smart thermostats to enter the rapidly growing smart energy tariff market, we believe that tado° can enable significant household cost savings, access to renewable energy and CO2 reductions at a crucial time during the ongoing energy and climate crises. tado° aligns with Trill Impact’s mission, combining high impact and commercial potential, and we’re looking forward to helping them reach their full potential.”

Dr. Arne Morteani, Founding Partner at Kiko Ventures, commented, “tado° has pioneered the smart thermostat category in Europe. It is now perfectly positioned to break new ground again, by changing the way households use and pay for energy. We are delighted to join the company during this next phase of growth.”

Energy-efficient smart thermostats

Since 2011, tado° has built consumer-friendly and energy-efficient smart thermostats and services, compatible with over 95% of all homes in Europe, that only heat when and where they are needed. It employs 180 people and boasts significant energy-saving features (up to 31%) along with a self-install option, which makes heating costs more affordable.

In addition to selling 3 million smart thermostats, the company is also working with real estate companies that manage large rental properties.

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