Italian startup Termo raises €8.5M for its digital platform for energy efficiency; here’s how it works

Founded in Fondi (Latina), Termo (previously Termostore), a digital service platform for sustainable HVAC (Heating, ventilation, and air conditioning) systems installation and maintenance for households, has raised €8.5M in a combined Series A and Series B round of funding.

Investors in the current round

The round was led by Fondo Italiano d’Investimento SGR through their managed funds FITEC Lazio and FITEC. The firm has acquired a minority stake through a total investment of €6M.

This is the first investment for FITEC Lazio – a parallel fund of FITEC with an endowment of €18M through the Community funds POR FESR 2014/2020 – which invests, together with the main fund, in companies with high technological content located in the Lazio Region.

Daniele Leodori, VP of the Lazio Region, says, “This investment supports the growth of a company in Lazio active in the greentech sector, a strategic area in which the Region is strongly committed and which will be central to the development of the next years; a commitment that we intend to continue and strengthen also with the next 2021-2027 Programming of European funds. It is also a significant opportunity for the reindustrialisation and employment relaunch of a strategic geographic area in the entrepreneurial system of our territory “.

The other €2.5M was raised via a pool of investors including Alessandro Andreozzi, incubator Supernova Hub, Mercurio Holding (Proximity Capital Group), the Mediaset Group (through the subsidiary RTI), Pierluigi di Paolo and Gabriele Basile. Notably, the startup was incubated by Supernova Hub. 

Use of the raised capital

The raised capital will help the startup to accelerate its growth plans as well as in fostering its services and product offerings.

Alessandro Andreozzi, co-founder and newly-appointed President of Termo, says, “Thanks to this important investment we could accelerate our ambitious growth and innovation goals in a key sector for the entire national energy efficiency plan. The additional skills that will be added to the team will allow us to enhance investments in all areas of the company, with the aim of improving our service and the energy efficiency of our customers’ systems, from the first purchase to periodic maintenance and extraordinary.”

Appointment of a new CEO

With Andreozzi nominated as the President of Termo, Gabriele Basile – one of the co-investor, has now been appointed as the new CEO of the company.

Gabriele Basile, says, “I am happy to be able to participate, as manager and investor, in the first GreenTech initiative that integrates extremely diversified activities and services, from BPO for financial institutions linked to ‘EcoBonus 110’ to general contractor activities in the energy and seismic upgrading sector. With Termo, we want to accelerate the process of reducing energy consumption related to residential and public buildings in Italy.”

Basile has previously worked as an advisor/consulting for private equity funds and entrepreneurs analysing potential MBO/MBI in the UK and Italy. Prior to that, he was the CEO of Colcom Group for almost about six years. Colcom Group manufactures hinges, locks, and fastenings for doors as well as tempered glass panels.

What does Termo do?

Founded in 2014 by Alessandro Andreozzi, Termo has developed a full-service model specialising in the sale, installation and replacement of heating and air conditioning products, ensuring environmental and economic sustainability.

Besides, the company, through its digital service platform, also offers a transparent and “turnkey” service for the installation and management of systems with tax bonuses (“eco-bonuses”) already discounted on the invoice if applicable.

Termo allows customers to book appointments of a qualified team of technicians to receive a turnkey service, timely, with transparency and with the opportunity to deduct any environmental tax credit directly from the invoiced amount.

Currently, it employs 84 people, with revenues doubling from $2.9M (approx €2.38M) in 2019 to about $6M in the current year 2020.

Recent growth

In 2020 Termo has launched two new business lines leveraging its competences in managing the environmental tax credits currently in place. The company offers support in 

i) Home renovation and energy efficiency improvement, as a general contractor, offering customers the opportunity to deduct the environmental tax credits directly from the invoiced amount. 

ii) In Business Process Outsourcing – “BPO” – on behalf of financial institutions, for the management of environmental tax credits generated by other general contractors.