Sustainable heating startup Vamo announced that it has raised €7 million in new capital, expanding its seed round to over €10 million (USD $10.8), after having raised €3 million in 2023, with proceeds aimed at advancing its solution enabling households to deploy heat pumps.

Heat pumps are rapidly emerging as an energy efficient and climate-friendly alternative to furnaces and air conditioners, producing fewer greenhouse gas emissions and reducing reliance on fossil fuels. According to the International Energy Agency (IEA), heat pumps have the potential to cut global CO2 emissions by at least 500 million tons by 2030.

Founded in 2022, Cologne, Germany-based helps customers switch from oil and gas to modern heat pump systems, using its proprietary software solution, HeatOS, which optimizes the process from the customer’s request to installation by managing the complex supply chain in the background. The switch from gas or oil heating to the heat pump system can be done within 30 days with Vamo, the company said. Additionally, after the heat pumps are installed, they are connected to the internet and monitored and optimized in Vamo’s control room to ensure reliable performance, maximized efficiency and minimized energy consumption.

Vamo said that it is building ‘the Heat Fleet,” a growing network of interconnected heat pumps, forming a smart system that adapts to fluctuating energy demand and optimizes energy consumption, which can help reduce the need for grid expansion and infrastructure costs.

Dr. Jan Ossenbrink, co-Founder & CEO of Vamo, said:

“We will render heat pumps a no-brainer for mainstream customers, making it risk and burden-free for homeowners to switch to the cheapest form of heating. All of this while earning money from stabilizing the power grid of the future. The new funding will allow us to seize the Edison moment in green digital heating.”

The round was led by Berlin’s Extantia Capital and Munich’s GET Fund. Existing investors caesar, neosfer, and Realyze also participated in the round.

Joern Carlos Kuntze, co-Founder & partner at Extantia Capital, said:

“Vamo is set to lead the future of sustainable heating. We’re thrilled to back a team proving that the transition can be faster, more affordable, and capable of saving customers millions.”