Munich start-up Tado°, a specialist in intelligent home climate management, has completed a €43m funding round and plans to become profitable in 2023.

Since its foundation in 2011, Tado° has built consumer friendly and 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 company focuses on a strong customer experience that allows users to self-install, combined with energy saving features, curbing 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.

In 2022, Tado° doubled its annual revenue in smart thermostats and service sales, as homes across Europe seek to improve energy-efficiency. The company has reached three million sold smart thermostats and is on track to continue its fast growth, while aiming to become profitable this year.

Following this round, Tado° plans to expand its offering in home energy management, 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 thereby unlock further savings.

To kickstart this opportunity, Tado° recently acquired aWattar, a pioneer in energy load shifting and time-of-use energy tariffs. The combined business now plans to scale its bundled offering and enable warm homes at low cost and CO₂ emissions.

To reach more households, Tado° has also started to work with real-estate companies that manage large numbers of rental homes. A product line for this market segment will be launched this year.

“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 heating costs and CO₂ emissions,” said Christian Deilmann, co-founder and chief product officer at Tado°. “We are looking forward to strong partnerships with the newly joined shareholders.”

The investment comes from new investors Trill Impact Ventures, Bayern Kapital, Kiko Ventures and Swisscanto, as well as Noventic, Target Partners and other existing shareholders.

“We see Tado° as an attractive venture case with strong market and impact timing,” said Alexander Domin, co-head of Trill Impact Ventures. “By leveraging their leadership in smart thermostats to enter the rapidly growing smart energy tariff market, Tado° is enabling 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.”

Arne Morteani, founding partner at Kiko Ventures, added: “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.”

As a cross-manufacturer platform, Tado° smart thermostats and services connect with any kind of heating or cooling system. Customers benefit from energy-saving technology such as geofencing and open-window detection as well as time-of-use energy offerings.

The company was founded in Munich in 2011, and has 180 employees.