Otovo raises €30 million to accelerate entry to six new markets
Otovo, a European marketplace for residential solar and battery installations, has successfully secured a fundraise of €30M to accelerate entry to six new markets within the next 12 months to strengthen its leading position in Europe. Currently, Otovo is present in seven markets: France, Germany, Italy, Norway, Poland, Spain and Sweden. The fundraise saw strong interest from existing investors, led by the leading solar investor in the Nordics Axel Johnson.
Otovo is listed on the Euronext Growth Exchange in Oslo, with a market capitalization of circa €200 million.Otovo is seizing the unique opportunity to take a leading position in new markets on the back of high energy prices and regulatory tailwinds, leveraging its scalable business model and proven capabilities.The company has a proven track record of scaling to new European markets and gaining market share quickly with consistent volume growth. With entering the new countries, Otovo is expected to address a market where ~2,000,000 new customers go solar every year by 2024. This implies a market size of more than €20 billion.
“We are increasingly confident in our ability to launch in new markets. Poland, Italy and Germany were launched in 12 months. We are present in seven countries, and have six to eight additional attractive markets in our sights for the next year, year-and-a-half,” says Otovo’s Chief Executive Officer, Andreas Thorsheim.
“Our competitors are typically single-market players. We are probably the fastest-growing player in the market, and we aim to be the first to have a full continental, pan-European presence. The idea is that the new markets will enable us to grow even faster, get increased volume advantages, unlock unique partnerships, reduce cost of capital for our subscription business and close attractive equipment deals”, adds Thorsheim.
The fundraise saw strong interest from existing investors, where Axel Johnson AB (www.axeljohnson.se/en, the leading solar investors in the Nordics and the largest shareholder in Otovo with an ownership of 20.06%), Obos BBL (https://nye.obos.no, with an ownership of 3.49%) and Nysnø Klimainvesteringer AS (www.nysnoinvest.no, Norway’s climate investment fund, with an ownership of 7.39%) all pre-subscribed for its pro-rata share.
