Tado, the German smart home startup that specializes in thermostats and more recently moved into flexible "time of use" energy tariffs based on loadshifting technology, is today announcing the next step in its life as a business. It is going public by way of a deal.
The new company will be listed on the Frankfurt exchange, and it will be focused on sustainable technologies. The PIPE transaction is expected to value tado at 450 million, which is more than the current market value. The new business will be called tado.
tado is not revealing how much it plans to raise in the listing, nor when it will happen, but it will likely happen in the first half of 2022.
The move comes on the heels of two big developments. tado acquired aWATTar last week, which will allow the company to better manage energy consumption and costs based on how the customer uses energy, and how pricing varies depending on the fluctuations of that
tado raised $46 million in May. The company said at the time that this would be its last round before a listing. The company raised close to $150 million, with an impressive list of investors, including Amazon, and Telefonica. The private round's valuation was around $255 million, which is less than the 450 million it expects to achieve with its market cap listing.
One of the first big green tech startups in Europe to go public is the subject of the deal. Tado wants to build services to help manage energy use in and end-to-end system, starting at the power grid and ending with consumers in their homes. The business has taken two different paths so far. It started as a maker of smart thermostats and has sold 2 million of them. tado diversified into energy tariffs and managing use is catapulting the company into a wider business based on big data, predictive analytics and harness the wider and very fragmented markets of renewable energy and energy hardware systems.
The company says that it has sold more than 2 million smart thermostats and that it has connected 400,000 buildings and households in 20 countries with 7 gigawatts of energy capacity under management. The company works with 18,000 systems from 900 manufacturers and claims that it can save customers 22% on heating costs.
A new window of opportunity has opened up for green tech and clean tech companies, as concerns about climate change continue to become more urgent, and services for consumers to make choices to reduce greenhouse emissions become more readily available and affordable. One of them feels confident enough in their traction to make the leap into being publicly traded to grow further.
Toon Bouten, CEO of tado, said in a statement that the entire team is proud to partner up withGFJ. We have the same passion for environmental technologies. We are determined to help our customers save money. We are in a good position to create a sustainable energy future.
When the deal is done, Oliver Kaltner will take over as CEO, with Christian Deilmann as CFO and Johannes Schwarz as CTO. Emanuel Eibach will be the CFO. The chairman of the board will be Gisbert Rhl. The five new members of the board are: Toon Bouten, Josef Brunner, Petr Mkovec, and Maximilian Mayer.
Gisbert Rhl, CEO of GFJ, said that tado already is a market leader in the spirit of a new wave of green tech companies. We are excited to help them grow and develop their technology. In the EU, around 21% of energy consumption is used for heating and cooling private housing alone. If the EU and Germany want to become the world's first climate-neutral economy by 2050, there is no alternative to decarbonising the housing sector.
tado will gain a new level of transparency to the market, which will be good for the green tech industry as a whole. The company expects to make more than 500 million dollars in annual revenues by the year 2025.
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