Otovo, headquartered in Oslo and operating as a marketplace for solar and battery storage solutions, has revealed the successful completion of a new funding round, securing €40 million (equivalent to approximately NOK 450 million).
The funding round was spearheaded by existing investors Å Energy, Axel Johnson Group, and Nysnø (The Norwegian Government Climate Investment Fund).
As part of this latest funding round, Otovo’s major investors, who previously held a 44 percent stake in the company, were allocated additional shares. Axel Johnson Group, through its AxSol subsidiary, acquired shares valued at NOK 104 million. In comparison, the state climate fund Nysnø and Obos obtained shares worth NOK 29.4 million (approximately €247,000) and NOK 5 million (approximately €420,000), respectively.
Å Energi, the prominent Nordic utility formed by a merger in 2022, contributed over half of the funding and received shares valued at NOK 268 million (approximately €22 million).
This announcement follows Otovo’s successful fundraising efforts eleven months ago when it secured €120 million in a combination of debt and equity shares from DNB Bank ASA and SpareBank 1 SR-Bank. Additionally, the company raised €30 million in a funding round led by solar investor Axel Johnson in February 2022. Axel Johnson Group, Nysnø, and Obos, who collectively held a 44 percent stake in Otovo, received shares worth NOK 104 million, NOK 29.4 million, and NOK 5 million, respectively. Å Energi, the major contributor to this funding round, was allocated shares valued at NOK 268 million.
The infusion of capital positions the Norwegian startup to solidify its presence in the European residential solar market and chart a course toward profitability.
The Startup’s strategy for achieving profitability encompasses increasing sales volume, optimizing operational costs, and capitalizing on its subscription assets.
Otovo CEO, Andreas Thorsheim, notes, “This equity raise empowers Otovo to actively pursue opportunities in a energy market marked by historically low solar energy construction costs, escalating traditional energy prices, and a growing consumer appetite for cost savings.”
Simultaneously, the firm has initiated a share repair issue for up to 17.4 million shares at the same price and unveiled plans to restructure its options program for key employees.
“Thanks to the steadfast support and continued confidence of our major shareholders, Otovo stands on a solid financial foundation that enables us to focus on bolstering sales, implementing prudent cost-cutting measures, and unlocking the value of our subscription portfolio, ultimately steering the company toward profitability,” adds Thorsheim.
Established in 2016 by Andreas Bentzen, Andreas Thorsheim, Lars Syse Christiansen, and Simen Fure Jorgensen, Otovo operates as an online marketplace specializing in solar installations.
The platform has cultivated a network of over 500 highly qualified local energy installers who undergo rigorous vetting procedures. Leveraging its proprietary technology, Otovo assesses the solar potential of any residence and identifies the optimal price and installer for customers through an automated bidding process among available installers.
Jina Kwon, Otovo’s General Manager for the UK and Ireland, comments, “Once again, prominent investors have acknowledged Otovo’s track record and our remarkable potential for continued expansion, aiming to transition European households to solar energy. Having recently entered the UK market, we are enthusiastic about catalyzing the adoption of solar power in the UK, mirroring our success across Europe since 2016.”