Otovo, a Norway-based residential solar installer, raised NOK 450 million (~$41 million) capital raise led by existing investors Å Energi, Axel Johnson Group and Nysnø (The Norwegian Government Climate Investment Fund).
The investors, who previously owned 44 percent of Otovo’s shares, Axel Johnson Group (through its AxSol subsidy) was allocated shares for NOK 104 million (~$9.4 million), the state climate fund Nysnø for NOK 29.4 million (~$2.65 million) and Obos for NOK 5 million (~$0.5 million). Å Energi (the large Nordic utility created by a merger in 2022) provided more than half of the issue and was allocated shares for NOK 268 million (~$24.1 million).
The net proceeds from the Private Placement will be used for growth capital to build up the Company’s positions across Europe and general corporate purposes, to ensure a path towards profitability. The company plans to reach profitability through a combination of sales volume growth, operational cost improvements, and monetization of the Company’s subscription assets.
“The equity raise allows Otovo to aggressively pursue the opportunities given by an energy market in which the cost of building new solar energy is at an all-time low, traditional energy prices are rising and consumers are looking for ways to cut their expenses,” says Otovo CEO, Andreas Thorsheim.
Last year, the company secured 30 million (~$34 million) in funding to accelerate its solar expansion across six new markets over the next year.
According to Mercom’s 9M and Q3 2023 Solar Funding and M&A Report, in 9M 2023, Solar public market financing in 9M 2023 came to $7.2 billion in 19 deals, 47% higher compared to $4.9 billion in 11 deals in 9M 2022.