Berlin-based Trawa raises €10 million to use AI to make renewable energy purchasing easier for SMEs

Russia’s brutal invasion of Ukraine in February 2022 took businesses that depended on oil and gas energy by surprise. Suddenly, renewable energy became essential for survival. But how best to buy it?

This is how the idea was born for Trawa, a Berlin-based renewable energy provider, which recently raised €10 million in a funding round led by Balderton Capital. This funding round brings the startup’s total capital raised to more than 12 million euros.

Trawa’s argument is that it simplifies energy purchasing and management for small and medium-sized businesses (SMEs) by leveraging two elements: an AI-based platform that allows businesses to ‘purchase from renewable energy sources and downstream data from customers themselves on when they need it. the most energy.

The current energy crisis in Europe has caused electricity prices to rise two to three times higher than in the United States. Rising prices have also impacted eurozone manufacturing, which has been in decline for more than a year, and German manufacturing is expected to decline by 1.5% this year due to higher prices. electricity. energy prices and interest rates.

Renewable energy can help businesses alleviate some of these issues, but even though many businesses want to transition to green energy sources, the complexity of defining green energy and securing a consistent supply remains. problematic.

Trawa co-founder and CEO David Budde came up with the idea of ​​using AI to streamline green energy procurement while at Bain and Company. He realized that economic problems and sustainability regulations were hitting businesses at the same time.

“Prices have skyrocketed, volatility has increased and their core business has been affected. All of a sudden their products were no longer profitable because energy costs were increasing very quickly,” he told TechCrunch.

“At the same time, the European Commission and the German government were advocating stricter and stricter regulations. Now businesses had to deal with both. In recent years, if you wanted green electricity, you had to pay extra. This is exactly where we come in.

Budde said trawa gives SMEs, which typically lack energy procurement expertise, the tools to structure their energy purchases. trawa’s AI then creates an optimal combination of potency from different products to match the buyer’s consumption habits. The idea is that Trawa can purchase electricity in installments at staggered times, resulting in significant savings.

trawa’s management software also allows companies to take into account their own rooftop solar or battery systems. The startup claims that the combination of AI-powered purchasing and management software can save businesses up to 30% of their energy costs per year.

The startup already has a few industrial clients in the DACH region, including textile manufacturer SETEX-Textil, Amano Hotel Group, solar energy company Sunmaxx, logistics company Loxxess and automotive supplier Coroplast Group.

“In the face of the climate crisis and energy market volatility, renewable energy is a way for businesses to take control of their energy security. trawa offers businesses a tailor-made solution for energy supply, protecting SMEs from price explosions, helping them get the most out of investments in assets such as smart batteries and solar and providing granular data for ESG reporting,” said James Wise, general partner at Balderton Capital. in a report.

German climate technology investor AENU also participated in the round, alongside previous investors Speedinvest, Magnetic and TinyVC.