Tado, who is backed by Amazon in their smart home business, raised a whopping amount of $46 million from their new and pre-existing investors, in the latest fundraiser. They claim this funding to be the last round before they make a public offering or a sale.
Tado is a start-up based in Germany, which is claimed to have installed over a million of its smart thermostat products to date. They are actively competing with the likes of companies like Honeywell, Hive and Google’s Nest, as the market is getting more crowded gradually.
The latest round of funding was led by a Hamburg-based Noventic Group, which helped in bringing the total valuation of the funds up to $148 million to date. It also increased the value of the 10-year-old company by placing it in the high three-digit millions, as per the people who are knowledgeable in this matter. They also added how the company might consider a flotation, maybe in London or Frankfurt, even though they are not in a hurry.
While the tech companies in the US have cornered the American connected devices market, Tado is on its way to becoming a leading provider in the entire Europe, where it has active business with 11 out of 20 top utility companies, like Total, Engie and Eon.
Unlike some of the competitors they have in America, Tado builds thermostats that work perfectly with 18,000 air conditioning and heating systems across Europe, and also encompasses about 900 manufacturers. The company claims that these cover up almost 95% of households all over the continent, and it has been hoping about capitalizing on the upcoming climate measures.
Co-founder of Tado, Chistian Deilmann expressed to the Financial Times how the EU’s proposal of the Green New Deal and a sudden wave of regulations specified according to countries to reduce emissions has led to a surge in the need for smart home devices, and these demands come from tenants as well as landlords.
The largest market for Tado is Germany, and about 30% of the company’s revenue is collected from the German market. The introduction of CO2 pricing in the field of heating sectors has led to an increase in interest because of its energy-saving technologies.
Amazon made its first investment for Tado in 2018 via the Alexa Fund, and even joined the recent financing round. The US-based group has attained some of the early investments of the funds, like the company Ring which produces video doorbells, and was bought for an amount of over $1 billion three years ago.
At present, Tado also has close work relations with the competitors of Amazon too, including Google. They partnered on the launching of Apple’s Homekit, while Apple sells the Tado-made devices in its online and physical stores. The chief executive of Tado, Toon Bouten, mentioned that the company was always making operational profits.