Stockholm-based DREM, a greentech company specialising in affordable, smart heat pump technology, has raised €1 million in additional funding from venture capital firms Peak, byFounders, Redstone, and Futurum Ventures. This investment will support DREM’s recent expansion into France, the largest European market for heat pumps, and facilitate its continued growth across the continent.
Founded in 2022 by Babak Tighnavard, Hannes Palm, and David Sennerlöv, DREM launched in Sweden in early 2023, aiming to simplify heat pump purchases and reduce operational costs through innovative technology. The company uses digital pricing algorithms and AI that adapts heating based on weather conditions and hourly electricity prices, offering users a more efficient and sustainable heating solution.
Babak Tighnavard, CEO and co-founder of DREM, said: “The buying process for heat pumps is usually quite a complicated story, no matter which country you look at. Our model is digitalizing and simplifying the process, which also allows us to quickly scale up operations to more countries. France is Europe’s largest market for heat pumps and we see significant growth potential here.”
Despite facing challenges like a mild winter and rising interest rates, DREM has seen strong performance, with plans to double sales by the end of 2024. The company has achieved an annual revenue run rate of €10 million and doubled its workforce this year, bringing its employee count to 40. While Sweden’s heat pump industry experienced a significant decline in sales—43% and 50% respectively in the first two quarters of 2024—DREM has continued to grow and expand.
“We see continued growing demand and the interest rate cuts that have taken place and are ahead of us across the region will benefit the entire industry. The additional funds from our four largest investors allows us to accelerate expansion in France, while we are also evaluating a launch in another European country in 2025,” added Tighnavard.
DREM’s vision is to provide accessible and efficient heat pump solutions, contributing to lower heating costs and a more sustainable climate. Headquartered in Stockholm, DREM is led by a team with backgrounds in tech and energy industries, including roles at Kinnevik, Otovo, and McKinsey & Company.
