Oslo-based Otovo, a company that operates as a marketplace for the installation of solar panels and home batteries, announced that it has secured €40M in growth funding.
The investment was led by existing investors Norwegian energy group Å Energy, the Axel Johnson Group, and Nysnø, the Norwegian sovereign wealth fund for climate investments.
The Axel Johnson Group, Otovo’s largest investor, obtained shares worth approximately €9M. Nysnø and Obos received shares valued at around €2M and €400,000, respectively.
Å Energi, a major energy company resulting from a 2022 merger, received over half of the total capital injection, with shares worth about €23M.
Funds to strengthen position in Europe
Otovo will use the funds to support its expansion in the European market and general corporate needs.
In a company statement translated from Dutch, Andreas Thorsheim, CEO of Otovo says, “The capital raised in this financing round enables Otovo to respond to opportunities within an energy market where installation costs for solar panels are at historically low levels, the costs of traditional energy are rising and consumers are looking for ways to reduce costs.”
The company will also use the funds to pursue profitability as well as aim to lead in the European residential solar panel market. Otovo’s strategy for achieving profitability involves a blend of revenue growth, operational cost reductions, and monetising its subscription portfolio.
“Thanks to the support and continued confidence of our major shareholders, Otovo has a solid financial foundation. This allows us to work on increasing our turnover, implementing well-thought-out cost-saving measures and monetising our subscription portfolio. And that will put our company on the road to profitability,” adds Thorsheim.
“Easiest way to get solar panels”
Founded in 2016 by Andreas Thorsheim and Simen Fure Jorgensen, Otovo is a pan-European provider of solar installations, utilising patented technology to assess a home’s suitability for solar panels.
The platform connects individuals with local, high-quality installers. With a €100M turnover last year, the company is valued at €240M on the Norwegian Stock Exchange.
Otovo, with over 400 employees, links almost a thousand installers and operates in 13 European markets, including the UK, Germany, France, and Spain.
Otovo is also conducting a repair issue of up to 17.4 million shares at the current price, alongside a review of its option programme for strategic employees. In 2023, the company raised approximately €100M through bond issuances and an additional €60M through two share issues.
