Since its founding in 2011, Tado has been developing smart thermostats and solutions designed to help its customers reduce their heating costs – by an average of 22 percent, according to the company. During this time, the company has also completed several financing rounds, and now another is being added. The €43 million Series H is being led by Trill Impact Ventures, Bayern Kapital, Kiko Ventures, and Swisscanto as new investors. Noventic, Target Partners, and other existing investors are also contributing again. The financing round also follows Tado's IPO, which took place via a SPAC in early 2022.
In addition to its smart thermostat business, Tado has also been active in the flexible electricity marketing sector since the beginning of last year. It entered the market through the acquisition of the Vienna-based energy startup AwattarThe company's time-variable tariffs enable consumers to shift their electricity consumption to the greenest and cheapest hours. Combined with Tado's intelligent climate management solutions, this should enable consumers to significantly reduce their energy costs.
As a next step, Tado plans to significantly expand its bundled offerings to reduce energy costs and CO2 emissions for customers. It also plans to work more closely with housing associations that manage large numbers of rental properties. For this market segment, the startup introduce a new, adapted product line later this year.
Christian Deilmann, Co-founder and Chief Product Officer at Tado, comments:
"As the market leader in intelligent indoor climate management, now is the right time to bring our unique energy management offerings to the mass market. We look forward to strong partnerships with the new investors."
Tado has “done pioneering work in Europe”
Arne Morteani, Partner at Kiko Ventures, says:
"Tado has pioneered the smart thermostat category in Europe. The company is now perfectly positioned to break new ground again by transforming the way households use and pay for energy."
According to its own information, Tado sold around three million smart thermostats by the end of 2022 and doubled its business with smart thermostats and service offerings in 2022. The step towards profitability is now expected in 2023.
Monika Steger, Managing Director of Bavaria Capital, explained:
"With Tado, we have invested in a company that addresses the problem of high energy consumption in residential buildings, especially heating and cooling, with a sustainable and cost-saving approach. The strong sales growth of recent years demonstrates that, with this completed financing round, Tado has the tools to become one of the world's leading players in intelligent indoor climate management. We are pleased to support the company in its further expansion plans."
