German energy technology unicorn 1KOMMA5° has reached a valuation of US$1.35 billion in its latest financing round, raising €70 million from existing and new investors. The Hamburg-based company plans to direct the fresh capital toward expanding its artificial intelligence-driven energy management platform, Heartbeat AI. The announcement highlights the company's ambitions in home electrification, international expansion, and a possible future public listing.
Funding Round and New Investor
The round included Japanese cleantech fund Marunouchi Innovation Partners as a new investor. 1KOMMA5° has held unicorn status since 2023, reflecting sustained investor confidence in its decentralized energy approach. The company said the additional capital will support product development, commercial growth, and the scaling of its home electrification offerings across its seven active markets.
Investment in Heartbeat AI
1KOMMA5° plans to invest more than €100 million in Heartbeat AI during 2027, underscoring the platform's central role in its strategy. The platform automates energy management processes, including electricity trading, billing, and metering, to help households manage energy more efficiently. It also coordinates generation, storage, and consumption automatically, positioning the company as a specialist in home electrification and decentralized energy.
Demand for Heartbeat AI has accelerated as Germany moves to phase out feed-in tariffs for renewable power. The company reported that incoming orders in Germany increased by almost 50% in September alone, driven by rising interest in automated energy control. This policy shift has encouraged more homeowners to adopt intelligent energy management systems and take greater control over their electricity costs.
US Expansion and IPO Considerations
Chief Executive Officer Philipp Schröder said the company is considering entering the United States next year, citing strong interest from investors. The new Japanese investor is expected to bring relevant experience with energy investments in the US market. 1KOMMA5° is also keeping a US initial public offering under consideration as part of its longer-term capital markets planning.
Schröder said the company's financial performance in 2027 will be a key factor in deciding whether and when to pursue a listing. 1KOMMA5° previously shelved its US IPO plans in April 2025 amid market uncertainty linked to President Donald Trump's renewable energy and trade policies. The company continues to evaluate opportunities for international growth and a potential public offering.
Market and Regulatory Context
In October 2024, 1KOMMA5° filed a complaint with the European Commission over German government plans to subsidize at least 20 GW of new gas-fired power plants by 2030. The company argued that the subsidies would distort competition and disadvantage decentralized renewable energy solutions such as virtual power plants. It said it aggregates more than 600 MW of flexible energy capacity and aims to reach 20 GW by 2030.
The company also reaffirmed that it is targeting approximately US$750 million in revenue for the 2026 financial year. It currently operates in seven countries and employs 3,000 people. The latest financing and planned investment in Heartbeat AI reflect a strategy to strengthen its energy management technology while pursuing new opportunities.
The new funding round reinforces 1KOMMA5°'s position in the European energy technology market during a period of rapid change in household power management. With significant investment in AI, possible US expansion, and a future IPO under consideration, the company is aligning its capital strategy with long-term growth objectives. Its execution on Heartbeat AI and revenue targets will likely shape the next stage of its development.