Amsterdam-based VC firm Peak invests in Swedish greentech startup DREM

Stockholm-based DREM, a company simplifying the deployment of heat pumps for residential properties, has raised an additional €1M in funding. 

The investment came from venture capital firms, including Peak, byFounders, Redstone, and Futurum Ventures.

Making the transition to renewable energy affordable

Founded in 2022 by Babak Tighnavard, Hannes Palm and David Sennerlöv, DREM aims to make energy-efficient heating solutions more accessible.

Through innovative technology, the company seeks to reduce both energy costs and environmental impact, positioning itself as a key player in Europe’s sustainable heating market.

Launched in early 2023, DREM has focused on making heat pump acquisition more accessible through digital pricing algorithms and an AI-driven system that adjusts heating based on weather patterns and hourly electricity rates.

CEO and co-founder Tighnavard, says, “The buying process for heat pumps is usually quite a complicated story, no matter which country you look at.”

“Our model is digitalising and simplifying the process, which also allows us to quickly scale up operations to more countries. France is Europe’s largest market for heat pumps and we see significant growth potential here.”

The company first established itself in Sweden before expanding into France in mid-2024, recruiting Antoine Bluy, formerly Lime’s country manager, to lead its French operations.

Despite challenging market conditions, including high interest rates and a milder winter climate, DREM anticipates more than doubling its sales in 2024. This growth contrasts with a downturn in Sweden’s heat pump industry, where sales dropped 43 per cent and 50 per cent in the first two quarters of 2024. 

DREM has also achieved a revenue run rate of €10M and doubled its workforce to 40 employees over the past year.

Capital utilisation

The funds will support DREM’s recent expansion into France, Europe’s largest market for heat pumps, as it aims to simplify the heat pump purchasing process and reduce operational costs. The funds will also be used to explore additional European markets. 

Babak Tighnavard says, “We see continued growing demand and the interest rate cuts that have taken place and are ahead of us across the region will benefit the entire industry.”

“The additional funds from our four largest investors allow us to accelerate expansion in France, while we are also evaluating a launch in another European country in 2025.”