Swedish greentech company DREM, which provides homeowners with heat pumps, has raised €2 million from Dutch VC Peak. With the fresh capital, the company plans to expand in Europe.
By combining digital pricing algorithms, virtual home visits, and a marketplace for installers, DREM simplifies the purchasing process for heat pumps, while offering homeowners a safer and more affordable deal. According to the company, the early stress testing and the initial traction, have proven the solution to be competitive. DREM was founded in 2022 by Babak Tighnavard (formerly from Kinnevik and Norwegian solar cell company Otovo), Hannes Palm, and David Sennerlöv.
“Financing at this stage is a significant boost for DREM. We are digitizing and streamlining installations at a time when people are seeking alternatives to natural gas and electricity, as prices are on the rise, and at the same time want to take responsibility for the environment and their energy consumption. In Sweden, the number of installed heat pumps per household is around 50%, while in the rest of Europe, the number is below 10%. A reason why both we and our investors see great potential in expanding DREM beyond Sweden’s borders,” said Babak Tighnavard, CEO and co-founder of DREM.
In Sweden, the business model is further supported by the government’s new energy efficiency grant, which was enacted this summer. The grant is primarily aimed at homeowners who currently heat their homes with direct-acting electricity or gas, and the subsidy amount of up to 30,000 SEK (approx. €2.5k) can be used for the installation of heat pumps, among other things. Over the next two years, the Swedish heat pump market is estimated to be worth about €2 billion.
“In Europe, there is a shortage of heat pump installers compared to households desiring to switch from gas to heat pumps. The DREM platform streamlines the industry so that installers can focus on performing the actual work of installing rather than having to spend time acquiring customers and marketing themselves. The potential for the European market is enormous, as DREM’s model balances the shortage of installers and facilitates households’ transition,” added Indra Sharma, Partner at Peak.
During the spring, DREM has successfully attracted capital from investors like Edgeir Aksnes, co-founder of Tibber, Mattias Miksche, former board member of companies such as Avanza, Dustin, and Pricerunner, as well as Peter Lindholm, co-founder of Frontier Car Group. Byfounders, Redstone, Futurum ventures and US based Hawktail participated in DREM’s initial investment round. Redstone was an early investor in one of Europe’s largest heat pump installers, Thermondo GmbH.
