In February 2022, Russia’s aggressive invasion of Ukraine caught businesses relying on oil and gas off guard, suddenly making renewable energy essential for their survival. But how should they go about procuring this energy efficiently?
This situation inspired the creation of Trawa, a Berlin-based renewable energy provider, which recently secured €10 million in a seed funding round spearheaded by Balderton Capital. This round brings Trawa’s total capital raised to over €12 million.
Trawa’s unique proposition is to simplify energy procurement and management for small and medium-sized enterprises (SMEs) through an AI-driven platform. This platform not only allows businesses to purchase energy from renewable sources but also utilizes customer data to identify peak energy usage times.
The ongoing energy crisis in Europe has resulted in electricity prices soaring to levels two to three times higher than in the United States. These elevated prices have heavily impacted manufacturing in the Eurozone, which has been declining for over a year. Additionally, German industry is projected to shrink by 1.5% this year due to rising energy costs and interest rates.
While renewable energy can mitigate some of these challenges, many companies find the transition to green energy sources daunting due to the complexities of defining green energy and ensuring a reliable supply.
David Budde, Trawa’s co-founder and CEO, conceived the idea of leveraging AI to streamline the green energy supply during his tenure at Bain and Company. He noticed that businesses were being simultaneously affected by economic challenges and increasingly stringent sustainability regulations.
“Prices skyrocketed, volatility increased, and their core operations were compromised. Suddenly, their products were no longer profitable because energy costs were escalating so rapidly,” Budde explained to TechCrunch.
“Meanwhile, the European Commission and the German government were introducing tougher regulations. This dual challenge left businesses in a bind. Historically, opting for green electricity came with a premium. That’s where we step in.”
Budde mentioned that Trawa equips SMEs, which often lack specialized energy procurement knowledge, with tools to structure their energy purchases effectively. The AI developed by Trawa then formulates an optimal mix of power sources to align with the buyer’s consumption patterns. This model allows Trawa to procure electricity in phased installments, leading to significant cost savings.
Additionally, Trawa’s management software enables companies to integrate their solar rooftop systems or batteries into their energy strategy. According to the startup, this combination of AI-driven purchasing and management software can help businesses save up to 30% on their annual energy costs.
The startup has already attracted several industrial clients in the DACH region, including SETEX-Textil, Amano Hotel Group, Sunmaxx, Loxxess, and Coroplast Group.
“In light of the climate crisis and the volatile energy market, renewable energy enables companies to gain control over their energy security,” stated James Wise, General Partner at Balderton Capital. “Trawa provides a tailored solution for energy procurement, protecting SMEs from price surges, optimizing investments in smart batteries and solar power, and delivering detailed data for ESG reporting.”
The funding round also saw participation from German climate tech investor AENU and previous investors such as Speedinvest, Magnetic, and TinyVC.
