Six million euros for German start-up Thermondo

German Climate-KIC start-up Thermondo, pioneer of the digital revolution in the heat solution and installation market, raised capital from new and existing investors from the energy and digital economy.

Holtzbrinck Ventures and Rocket Internet became shareholders of Thermondo. The two new investors joined E.ON, IBB Beteiligungsgesellschaft and Grey Corp. All investors had participated in the current round to the value of €6 million.

Revolutionary approach

Lars Langusch, partner at lead investor Holtzbrinck Ventures: “The team at Thermondo has managed to digitize a very complex craft service to a very high degree. This revolutionary approach combined with impressive growth convinced us to invest.” The company digitizes the process of the HVAC (heating, ventilation and air conditioning) exchange – from lead generation, sales, installation to after – sales.

This deep vertical integration leads to market disrupting service quality and an outstanding customer experience. At thermondo.de homeowners enter 15 data points about their current heating system and their future needs. An algorithm matches the customer requirements with solutions and provides quotes in real time. In addition to the algorithm, Thermondo created the largest digital product database with millions of solution packages for gas, oil heating systems and for solar based systems.

Fully vertically integrated, locally based teams install the new HVAC system at the customer’s homes. House owners benefit by enjoying an extremely efficient installation process, providing a customized HVAC system – often at prices significantly lower than those of conventional companies.

Digital energy services hold the future

“Digital energy services will change the energy world fundamentally. Therefore, we have confirmed our investment in Thermondo. The current partnership has shown that both sides can benefit: Thermondo gets access to our online channels and E.ON can offer new digital customer-friendly services.

Through the reinvestment in Thermondo we will strengthen our innovation ability”, says Susana Quintana Plaza, Senior Vice President of Technology and Innovation at E.ON.

Thermondo is technology-driven along the value chain: Manufacturers and wholesalers are connected via an interface with the IT of Thermondo, which enables just-in-time delivery of the hardware and simplifies the ordering process. Thermondo is an inventory free company.

The installation teams are connected with a proprietary Android app, which collects all the relevant information for the preparation and management of the installation. Centralized procurement translates into economies of scale at extremely low transaction costs.

Further growth in 2015

“We are happy to welcome Holtzbrinck Ventures and Rocket Internet as shareholders. Both have shown fantastic success as investors. Together with our diverse group of investors, we will scale Thermondo further, so that thousands of homeowners will enjoy a new and better customer experience”, says Philipp Pausder, co-founder and CEO of Thermondo.

The fast growing start up employs 90 people, half at its headquarters in Berlin and the other half in 12 German metropolitan regions. In 2015 more than 140 new hires are planned to support the rapidly growing business.

Thermondo was supported by the German Climate-KIC Accelerator from October 2012 until April 2014.