Munich-based Tado° secures €30M to transform the way heating and cooling systems operate in buildings

Munich-based Tado°, an intelligent home energy management startup, announced that it has secured €30M in funding from Panasonic Heating & Cooling Solutions Europe.

The investment builds on a partnership established last year, which integrates Panasonic’s heat pump technology with Tado°’s smart heating control and energy management services.

Tado° mission & vision

Founded by Christian Deilmann, Johannes Schwarz, and Valentin Sawadski, Tado° is dedicated to transforming the way heating and cooling systems operate in buildings, reducing energy waste and carbon emissions.

Since heating and cooling account for approximately one-third of global energy consumption, Tado° aims to create smarter, more efficient climate control solutions that benefit both the environment and consumers.

Tado° lowers energy use by up to 28 per cent by adjusting heating and cooling based on actual needs, preventing unnecessary consumption. This reduction in energy use leads to lower heating and cooling costs, allowing users to recover the cost of Smart Thermostats over time. 

By decreasing carbon emissions, Tado° supports sustainability efforts while maintaining indoor temperature preferences.

How Tado° works?

Tado° manages indoor temperatures through automation and multiple control options. The company’s app enables users to adjust settings, monitor usage, and access reports. Integration with smart home platforms allows voice commands for temperature changes. 

Features like geofencing adjust settings based on occupancy, while weather adaptation modifies heating or cooling based on forecasts. Intelligent scheduling lets users set personalised temperature plans, and automation features manage climate control without manual input.

Tado° operates with a wide range of heating and cooling systems, including radiators, underfloor heating, heat pumps, and air conditioning units. It works with various manufacturers to ensure compatibility. 

The company partners with energy providers and installation firms to extend its availability. It has over one million devices in use globally.

Scientific Validation

Tado°’s effectiveness is backed by research, including a study by the Fraunhofer Institute for Building Physics (2022), which confirmed the energy savings benefits of smart heating control based on weather forecasts and presence detection.

Aims to become a “unicorn”?

Handelsblatt reports that Tado° was valued in the mid-three-digit million euro range as part of its funding round. The company maintains an open technology model and ruled out a full acquisition. Tado° states that a full acquisition was not considered, as its business model supports open technology for multiple providers. 

While manufacturer Stiebel Eltron has offered internet-connected heat pumps for over a decade, its Head of Product Management, Hauke Hagen, questions whether Tado° can optimise them better than manufacturers. Tado° founder Deilmann highlights that the app allows room-specific control, with Panasonic offering direct integration for optimised performance.