Thermondo secures € 6 million from Holtzbrinck Ventures and Rocket Internet

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Thermondo, one of the pioneers of the digital revolution in the heat solution and installation market, raises fresh capital (€6 million) from Holtzbrinck Ventures and Rocket Internet as well as from the existing investors E.ON, IBB and Grey Corp.

The Berlin-based startup digitizes the process of the HVAC exchange – from lead generation, sales, installation to after-sales. This deep vertical integration leads to market disrupting service quality and an outstanding customer experience. At www.thermondo.de homeowners enter 15 data points about their current heating system and their future needs. An algorithm matches the customer requirements with solutions and provides quotes in real time. In addition to the algorithm, Thermondo created the largest digital product database with millions of solution packages for gas, oil heating systems and for solar based systems. Fully vertically integrated, locally based teams install the new HVAC system at the customer’s homes. House owners benefit by enjoying an extremely efficient installation process, providing a customized HVAC system – often at prices significantly lower than those of conventional companies.

Lars Langusch, partner at lead investor Holtzbrinck Ventures: “The team at Thermondo has managed to digitize a very complex craft service to a very high degree. This revolutionary approach combined with impressive growth convinced us to invest.”

Thermondo is technology-driven along the value chain: Manufacturers and wholesalers are connected via an interface with the IT of Thermondo, which enables just-in-time delivery of the hardware and simplifies the ordering process. Thermondo is an inventory free company. The installation teams are connected with a proprietary Android app, which collects all the relevant information for the preparation and management of the installation. Centralized procurement translates into economies of scale at extremely low
transaction costs.

“We are happy to welcome Holtzbrinck Ventures and Rocket Internet as shareholders. Both have shown fantastic success as investors. Together with our diverse group of investors, we will scale Thermondo further, so that thousands of homeowners will enjoy a new and better customer experience“, says Philipp Pausder, co-founder and CEO of Thermondo.

The fast growing startup already employs 90 people, half at its headquarters in Berlin and the other half in 12 German metropolitan regions. In 2015 more than 140 new hires are planned to support the rapidly growing business.