According to reports, a competitor of European Nest “Tado” has allegedly gathered $50 million in a funding round. The participants of the funding round included Alexa Fund By Amazon, Total Energy Ventures, E.On, the European Investment Bank, Inven Capital, and Energy Innovation Capital.
The Germany-based company is a provider of two prime products smart air conditioner control and a smart thermostat. Both the products are compatible with the existing A/C and heating system for smart heating and cooling IoT-based appliance.
Tado, as of now, has raised nearly $52 million in funding, which includes $17 million tranches in 2015 and yet another $23 million a year later. Commenting on the new funding round the company said that it will use the funds to expand its offering which now will include installation services and software as a service (SaaS). The company as of now is not mulling over developing any new hardware.
Toon Bouten, Tado CEO said that the future buildings will be smart as they will be equipped with intelligent cooling and heating devices. He further added that the market conditions are conducive for the company to invest and come out as the pioneer in the fast emerging market.
Tado has recently shifted its focus entirely to the European market even though it had retail collaboration in the US. The company is not offering its services to global customers as of now. Anyone willing to avail its products and services will have to buy it from Europe only.
The company has a stronghold in smart home appliances. It is a direct competitor of Nest, a company that Google bought in 2014 for $3 billion. Earlier this month, Nest launched a cost-effective smart home device dubbed Thermostat E in Europe that allows the owners to control the home temperature through their voice.
Tado has gathered investment from Amazon’s Alexa Fund which is likely to support its competitiveness against Next’s recently launched voice devices. Tado has previously worked with Alexa in 2016 and now the direct funding from the e-commerce giant will help the company to gain some momentum. The funding is likely to strengthen the bond of the two companies.
As far as investment strategies are concerned Amazon is one of the leading investors in smart home appliances. The company was in news for acquiring a smart doorbell maker Ring for $1 billion. It has also acquired a yet another smart doorbell and security camera maker Blink. The company has also invested heavily on smart thermostat maker Ecobee.
However, Tado has not revealed as for how it going to present itself in the smart home devices to stay competitive. Although the company has decided to stick to its domestic European market, the decision could limit its horizon. This, in turn, may make it difficult for Tado to stay competitive in the global market. The new funding round has brought the company’s total funding to $102 million since its inception in 2011. Tado as of now has 40,000 stead-fast networks of heating engineer partners.