HomeFundingMunich-based tado° scoops up €43 million to make Europe more energy efficient

Munich-based tado° scoops up €43 million to make Europe more energy efficient

On track to scale into profitability in 2023, GreenTech startup tado° has just landed €43 million in new funding. The Munich-based team is helping consumers become more energy efficient with its smart thermostats and energy services and is reaching households across the continent.

Whilst 2022 brought a number of challenges to European households, it laid clear the importance of becoming more energy efficient and working towards a more sustainable energy model. While energy prices spiralled out of control, temperatures dropped and the continent’s energy supply chain and independence came under scrutiny – all within the backdrop of an escalating climate crisis – the need to move towards more sustainable consumption couldn’t be more urgent. 

Munich-based tado° is on track to help Europe become more energy efficient through smart tools that make managing home energy use much simpler. The startup is on track to become profitable this year as demand ramps up, and, it’s just picked up fresh funding to grow. 

Funding details

  • €43 million raised ina  new funding round
  • Trill Ventures, Bayern Kapital, Kiko Ventures, and Swisscanto join as new investors
  • Builds upon a €43 million raise in 2018

Christian Deilmann, co-founder and Chief Product Officer at tado°: “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.”

Founded in 2011, tado° envisions a world where energy wastage is a thing of the past. To achieve this, the startup has built 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 user-friendly devices are easy to self-install and can reduce 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. Which, in current economic times, is a massive incentive to consumers. 

Tado°’s product stands out as one of the few cross-manufacturer platforms, meaning that the smart thermostats and services can connect with any kind of heating or cooling system. Customers right across Europe can therefore benefit from energy-saving technology such as Geofencing and Open Window Detection as well as time-of-use energy offerings.

Dr. Alexander Domin, Partner and Co-Head of Ventures at Trill Impact: “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.”

Now with new cash in the bank, the Muncih-based innovators plan to expand its offering even further 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 unlock further savings for consumers. 

To kickstart this opportunity, tado° recently acquired aWATTar GmbH, the pioneer of energy load shifting 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. 

Dr. Arne Morteani, Founding Partner at Kiko Ventures: “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.”

Patricia Allen
Patricia Allen
is the Head of Content at EU-Startups. With a background in politics, Patricia has a real passion for how shared ideas across communities and cultures can bring new initiatives and innovations for the future. She spends her time bringing you the latest news and updates of startups across Europe, and curating our social media.
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