Tado is receiving a $50 million investment. The smart thermostat maker plans to use the money to develop additional offerings.
The Munich Successful startup Tado has raised $50 million—equivalent to approximately €43 million—in fresh capital in an international financing round. Investors include Amazon, E.ON, Total Energy Ventures, Energy Innovation Capital, Inven Capital, and the European Investment Bank. This brings the total financing to $102 million, or €89 million. The company, founded in 2011, says it intends to use the new capital to strengthen its market position and invest in product development.
The Munich-based company's smart thermostats connect heating and air conditioning systems to the internet. The smartphone app detects whether residents are leaving or approaching their home, and whether a window is open. The thermostats react accordingly. The system also takes weather forecasts and self-learning algorithms into account. Overall, this is expected to result in savings of up to 31 percent in heating costs.
Tado plans further offers
The company estimates that the still relatively small market for smart thermostats will grow by 54 percent each year in the coming years. Tado expects a total global volume of $6.8 billion by the end of 2022. The Tado CEO Toon Bouten says:
"We believe that in the near future, every building will be intelligently heated and cooled. Now is the right time to raise capital and use it to establish Tado as the number one in this growing market."
Co-founder and CPO Christian Deilmann announces that it intends to use the fresh capital to develop additional products and services. The company also intends to support its customers in selecting the right energy tariff and a suitable heating system, as well as in repairs and annual maintenance.
