Otovo ASA, an AI-enabled platform for behind-the-meter energy services, has completed a private placement financing of US$3 million in gross proceeds. The Oslo-listed company said the transaction brings total capital raised to approximately US$40 million within a little over 12 months. The new funding supports the final phase of Otovo's transformation into an AI-enabled energy services platform and its preparations for a contemplated dual listing in the United States.
Strategic Use of Proceeds
The private placement proceeds will fund strategic acquisitions, M&A opportunities, costs tied to the planned U.S. dual listing, and general corporate purposes. Otovo indicated that the completed equity raise and a separate asset sale are expected to provide more than US$5 million in combined proceeds, subject to completion of the asset sale. CEO William J. Berger said the company is focused on putting its capital and platform to work while expanding service activity and reducing overhead.
AI Platform Drives Efficiency Gains
Otovo's in-house Endurance AI platform manages the energy systems of more than 65,000 customers and has performed better than expected, according to Berger. The company's September operational update included a preliminary, unaudited estimate that SG&A staffing, measured in full-time employee equivalents, declined by one third between August 1 and October 1, 2026. Otovo attributed the cost reductions running ahead of its July 31 plan primarily to improved performance and expanded capabilities of Endurance.
Service Growth and Margin Improvement
The September update also reflected a month-over-month 13% increase in estimated service work orders and a 15% increase in estimated average revenue per service work order. September estimated gross margin reached 49%, which Otovo described as its best month to date. Berger said that growing service activity both organically and inorganically while reducing SG&A has improved financial performance and will continue to strengthen Adjusted EBITDA and cash flow from operations.
Acquisitions and Service Expansion
Otovo has announced 10 acquisitions expected to be accretive as it builds scale in operations and maintenance, solar, storage, and EV charging services. The company has expanded its energy service platform to more than 65,000 customers across the United States and Europe in less than a year. In October, Otovo closed its acquisition of PV Hawaii, extending its behind-the-meter service platform into Hawaii for the first time.
Pending Deals and Partnerships
Otovo also announced in August its intent to acquire Mr. Elektro, a Norwegian solar and electrical contractor, with the PV Hawaii and Mr. Elektro transactions carrying a combined purchase price of approximately US$4.6 million. The Mr. Elektro acquisition would add licensed, in-house installation and service capacity in Norway with immediate reach into Sweden. In September, Otovo announced a U.S. service partnership with InCharge Energy, a trusted national provider of EV charging installation and maintenance services.
European Letters of Intent
Otovo has entered into non-binding letters of intent to acquire all issued and outstanding equity interests of two European target companies engaged in energy management services from their current parent company. The contemplated purchase price remains subject to agreement and is expected to be payable in cash at closing. The letters of intent remain subject to definitive agreements.
Asset Sale and Liquidity
Otovo also signed a definitive agreement to sell a portion of its holding in EDEA Europe, all shares in EDEA Switzerland, and a portion of residual assets to a third party. The sale is expected to result in proceeds of approximately US$2.4 million, along with the release of a US$1.5 million facility with DNB Bank. Otovo could grant up to two million warrants to the buyer at no additional cost if certain asset performance criteria do not meet expectations.
Otovo's current financing plan does not call for further equity sales to fund operations or additional acquisitions ahead of the contemplated U.S. dual listing. The company said its focus remains on executing fourth-quarter priorities and putting its capital and platform to work. With more than 65,000 customers and a growing service network, Otovo is positioning itself for continued improvement in Adjusted EBITDA and cash flow from operations.