tado is an intelligent home climate management company offering smart thermostats and services that connect with heating or cooling systems. Founded in 2011 and based in Munich, it has sold three million smart thermostats and in 2022 doubled its smart thermostat and service sales. The company employs 180 people. In 2023 tado is expanding its in-home energy management by combining its Smart Thermostats with Time-of-Use energy tariffs. To support that strategy it acquired aWATTar GmbH, a leader in energy load shifting and Time-of-Use energy tariffs. tado raised additional funding in 2023, bringing total 2023 funding to €55M, and intends to use the proceeds to expand operations and its business reach. Tado develops smart thermostats and a software platform that manages home heating and cooling with features like geofencing and open-window detection. The company is expanding into smart energy tariffs after acquiring Awattar, enabling time-of-use load shifting to reduce customer energy costs. Tado plans to scale by working with real estate companies that manage rental properties and by helping customers cut heating expenses. Management says the company is pursuing profitability in 2023 and has not implemented layoffs. Operating metrics disclosed in the article include more than 3 million smart thermostats sold since founding and a headcount of about 200 employees, mostly at its Munich headquarters. Prior funding and investor relationships (including Amazon, Siemens and E.On) support its go-to-market and growth efforts. Tado is a Munich-based smart home climate startup that manufactures smart thermostats for heating and air conditioning systems. It also produces mobile consumer applications and SaaS products for utility and heating service companies. The company's platform-agnostic approach enables interfaces with any type of heating or cooling system. Tado plans to use its new funding for further product development and market expansion and has entered a strategic partnership with Hamburg-based proptech firm noventic to develop and distribute energy-efficient products for the commercial housing market. The company raised €38 million in the round. As compliance with the European Green Deal grows, 81% of real estate companies report plans to adopt new digital technologies, which Tado aims to address. Tado builds smart thermostats and air-conditioning controllers that connect central heating and AC systems to the internet for remote and smartphone control. Its devices support Alexa, Siri and Google Assistant and are sold through Amazon and Apple retail stores. Tado engineers its thermostat to interface with the digital serial interfaces of thousands of boiler manufacturers, enabling modulation, remote diagnostics and smarter controls beyond simple on/off. Its service offering includes “proactive” boiler maintenance driven by app-collected data and a roughly 40,000-strong network of heating engineer partners. About 50% of sales come via B2B utility partnerships, Tado is available from over 30 utility companies, and pilots with utilities aim to enable demand-response schemes to help grid stability. Financially, the company has raised $102 million to date and is using new capital to develop products and extend its service offerings. Tado builds smart thermostats and a smart AC controller that let users control home heating and cooling via a smartphone app with a flagship geo-location (geo-fencing) feature. The company says 87% of its users take advantage of the geo-fencing functionality to automatically control their home climate. Its thermostat can connect to a boiler’s digital serial interface to enable modulation of heating and remote health monitoring and diagnostics. Tado offers a diagnostics portal to partner installers and service companies and sees potential future monetization via a marketplace for parts or cloud-based technical libraries. The startup is pursuing international expansion and aims to participate in grid-level energy management through partnerships with utilities and demand-response schemes. Financially, Tado has raised a total of $57 million since its 2011 founding, including a recent $23 million round to fund further expansion.

Total raised

$212M

Funding rounds

8

Latest round

Equity

Latest activity

Apr 2023