Reonic, a climate tech SaaS startup based in Augsburg, Germany, announced it has raised €13 million in a Series A funding round. The investment, led by Northzone, also saw participation from existing investors Point Nine and Puzzle Ventures. This development marks a significant milestone for Reonic, which aims to advance the deployment of sustainable energy solutions across Europe. The company focuses on providing specialized software to streamline workflows for renewable energy technology installers, addressing the need for digital solutions in this growing market.
When compared to previous reports on Reonic, it is evident that the startup has maintained a consistent focus on serving renewable energy installers. Prior information highlighted its inception as a side project in 2021, but recent developments show rapid growth and increased funding. Previously, the company had received smaller investments, which were primarily aimed at initial market penetration in Germany. The new funding round, however, indicates a broader ambition to expand across Europe and enhance product offerings.
Expanding European Market
Reonic plans to use the newly secured funds to extend its reach into neighboring European markets, starting with France. The company aims to enter the commercial photovoltaic market, and cover heat pumps and energy storage systems. With offices already established in Augsburg and Berlin, the startup’s latest funding brings its total capital raised to €16 million. The company has also reported a significant increase in recurring revenue, tripling in the past six months.
The team at Reonic, now consisting of 21 members, will also benefit from this financial boost. Co-founder Lars-Manuel Schneider emphasized the role of renewable technologies in Europe and the current lack of digital tools for independent installers. According to Schneider, Reonic’s software aims to empower these installers by providing them with best-in-class digital solutions and adjacent services such as procurement, payment, and financing.
Investor Insights
Investors have shown strong confidence in Reonic’s vision and market potential. Markus Gleim, Principal at Northzone, stated that the energy transition is one of the most significant challenges and opportunities of our time. Reonic, according to Gleim, is at the forefront of this movement, simplifying the adoption of renewable technologies and driving progress towards a more sustainable future.
Jessica Schultz, Partner at Northzone, added that Reonic’s end-to-end software addresses a critical need for digital tools among installers. The software not only simplifies workflows but also manages the increasing complexities of renewable energy projects. Schultz also mentioned that the team’s diverse skillset positions them uniquely to become the leading software solution in this market segment.
The new funding round signifies a pivotal point for Reonic in expanding its operational footprint. The company’s software provides a comprehensive solution for renewable energy technology installers, addressing a market segment that has long struggled with outdated and non-specialized software. By offering an end-to-end operating system, Reonic aims to support over 200,000 regional installers in Europe, thereby driving the continent’s energy transition. This strategic funding will also enable Reonic to explore new markets and expand its team, further solidifying its position in the renewable energy sector.
