Hamburg-based 1KOMMA5° has extended its €150 million pre-IPO funding round, originally closed in December 2024, as the German energy unicorn doubles down on artificial intelligence to challenge traditional utility providers across Europe and Australia.
The extension welcomes Sabanci Climate Ventures, the climate technology investment arm of Turkey’s Sabanci Group, as a new shareholder in the home electrification specialist. The additional capital will accelerate organic growth whilst scaling 1KOMMA5°’s flagship Heartbeat AI platform, which the company describes as an energy management system designed to deliver cost-optimized electricity to millions of homeowners.
AI-Driven Energy Management Takes Centre Stage
Between 2025 and 2027, 1KOMMA5° plans to invest more than €100 million specifically in scaling its software operations, with Heartbeat AI serving as the primary focus. The platform currently manages over 500 megawatts of flexible capacity, establishing what the company claims is Europe’s largest integrated residential virtual power plant.
“With Heartbeat AI, we are now aiming to become the last energy company consumers will ever subscribe to in their lifetime by replacing conventional utilities via AI-based, automated direct electricity procurement” ~ Philipp Schröder, co-founder and CEO.
The technology combines energy management software with virtual power plant capabilities, enabling households to transition from fossil fuel dependency whilst accessing what 1KOMMA5° characterizes as the cheapest and cleanest electricity available.
Resilient Growth Despite Market Headwinds
The funding extension comes as 1KOMMA5° demonstrates financial resilience amid challenging market conditions. Despite what the company describes as a two-year recession in Germany and a contracting European market for solar panels and heat pumps, the unicorn has maintained revenue growth and profitability in its core hardware operations.
“Despite two years of recession in Germany and regulatory challenges, we’ve maintained profitable growth.” ~ Philipp Schröder, co-founder and CEO.
Founded in 2021, 1KOMMA5° has rapidly scaled to serve over 120,000 customers whilst building a global workforce approaching 2,500 employees. The company’s portfolio encompasses solar power systems, energy storage solutions, and electric mobility infrastructure.
Strategic Investment in Software Revenues
Whilst maintaining profitability in hardware sales, 1KOMMA5° has simultaneously allocated significant resources towards developing its software capabilities. This dual approach reflects the company’s strategy to diversify revenue streams beyond traditional equipment sales into recurring software-based income.
The Heartbeat AI platform represents this strategic pivot, offering automated energy procurement services that the company believes will fundamentally alter how consumers interact with electricity providers. By aggregating residential energy assets into a virtual power plant, 1KOMMA5° aims to optimise energy costs for individual households whilst creating grid stability services.
Strong Financial Foundation
To date, 1KOMMA5° has secured nearly €400 million in equity financing whilst maintaining a debt-free capital structure. The company’s investor base includes Hamilton Lane, CalSTRS, G2VP, Porsche Ventures, Eurazeo, b2venture, eCapital, 2150vc, Norrsken, Blue Elephant Ventures, alongside family offices from Haniel, Schürfeld, and Jan Klatten.
This financial backing provides 1KOMMA5° with substantial resources to execute its expansion plans across multiple European markets and Australia, where the company sees significant opportunities for home electrification solutions.
The extended funding round underscores investor confidence in 1KOMMA5°’s approach to combining hardware expertise with software innovation. As traditional energy markets face increasing pressure from renewable alternatives and regulatory changes, the company’s integrated model offers a potential pathway for residential consumers seeking greater control over their energy costs and environmental impact.