Oslo-based Otovo, an online marketplace for residential solar and battery installations, announced on Wednesday that it has secured €120M in debt and equity shares placement.
The €100M (€50M + €50M) debt financing comes from DNB Bank ASA and SpareBank 1 SR-Bank, respectively, and will enable the construction of 12,500 solar subscription assets.
“With 12.000 solar subscription assets, Otovo will own and operate a large distributed power plant. In fact, it will be equivalent to some of the largest solar power plants in Europe,” says Andreas Thorsheim, CEO and founder of Otovo.
The fully guaranteed €20M equity is provided through a private placement by the company’s largest shareholders AxSol AB, Nysnø Klimainvesteringer, Agder Energi Invest, and OBOS.
The solar company says that once the financing is fully utilised, its subscription asset portfolio will have a value of NOK2B and consist of approximately 80-105 MW of solar power and battery assets.
The company also says that the proceeds from the round will drive a clean energy future across Europe by promoting energy independence for thousands more European households.
The announcement comes a year after raising €30M in a funding round led by solar investor Axel Johnson.
Otovo: What you need to know
Founded in 2016 by Andreas Bentzen, Andreas Thorsheim, Lars Syse Christiansen, and Simen Fure Jorgensen, Otovo is an online marketplace for solar installations.
The marketplace organises a network of more than 500 local, high-quality energy installers that have been vetted thoroughly.
Through its proprietary technology, Otovo analyses the potential of any home and finds the best price and installer for customers based on an automatic bidding process between available installers.
“We will provide Europe with significant amounts of the green power that is crucially needed to overcome the power shortage and environmental crises,” adds Thorsheim.
“DNB will drive sustainable transition by financing and facilitating sustainable activities worth NOK 1 500 billion by 2030. We are happy to support Otovo in their mission, which will provide easier access to renewable energy for individuals across Europe,” says Trine Loe, EVP of Future & Tech Industries in Corporate Banking in DNB.
“The partnership with Otovo is an important step to achieve this ambition and shows how Norwegian banks can take a leading position in supporting the energy transition,” says Tore Medhus, director of large corporates in Spb1 SR-bank.