tado°, the European firm focused on intelligent home climate management, announces the completion of a new funding round of EUR 43 million and its plans to become profitable in 2023.
In this investment round Trill Impact Ventures, Bayern Kapital, Kiko Ventures, and Swisscanto join as new investors.
Since its foundation in 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 it is necessary.”
The company “focuses on a strong customer experience that allows users to self-install, combined with significant energy saving features, curbing heating costs by 22 % on average.”
In recent years, tado° products have “provided customers with a payback time of less than half a year through its energy saving methods.”
In 2022, tado° “doubled its smart thermostats and service sales, as homes across Europe seek to improve energy-efficiency.” The company has “reached 3 million sold smart thermostats and is on track to continue its fast growth, while aiming to become profitable this year.”
Following this round, tado° will “expand its offering in home energy management, by combining its Smart Thermostats with Time-of-Use energy tariffs.” Such bundled offerings enable the shifting of a home’s energy use “towards times of lower priced energy and thereby unlock significant further savings.”
To kickstart this opportunity, tado° recently “acquired aWATTar GmbH, the pioneer of energy loadshifting and Time-of-Use energy tariffs.” The combined business now plans “to drastically scale its bundled offering and enable warm homes at the lowest possible cost and CO2 emissions.”
To reach even more households, tado° has also “started to work with real estate companies that manage large numbers of rental homes.” A new product line for this market segment “will be launched this year.”
Christian Deilmann, co-founder and Chief Product Officer at tado° comments:
“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, says:
“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.”