Berlin-based PropTech company KUGU Home GmbH has successfully completed a Series A financing round, securing €8.5 million to accelerate its mission to decarbonize the real estate industry. This round, led by Tengelmann Ventures, Gewobag ID, and industry veterans Michael Lowak and Axel Müller, also saw participation from existing investors Wecken & Cie., IBB Ventures, and Future Energy Ventures. With this significant funding boost, KUGU aims to expand its energy-efficient digital solutions, develop its product portfolio, and enhance its operations to further drive sustainability in the sector.

Revolutionizing Energy Efficiency in Real Estate

KUGU’s core offerings focus on helping real estate companies optimize their energy systems, which in turn reduces CO2 emissions and energy consumption by up to 30%. The company’s proprietary technology platform acts as an intelligent extension of the digital boiler room, monitoring and adjusting system parameters in real-time to ensure optimal energy efficiency and reduced environmental impact.

To date, KUGU’s solutions are deployed in more than 12,000 buildings, where they have collectively saved 25 million kWh of energy — roughly the annual consumption of around 7,000 households in Germany. Over 60 companies, including large housing associations, municipal utilities, and measurement service providers, rely on KUGU’s platform to achieve energy savings and sustainability goals.

Expertise Backing KUGU’s Growth

Tengelmann Ventures, a prominent investor in this round, has expressed strong confidence in KUGU’s potential for continued growth. Alexander Greis, Investment Manager at Tengelmann Ventures, emphasized the company’s innovation leadership in the digital energy solutions space. "Through continuous product expansion and experience with large housing associations, KUGU has become a key player in the digital transformation of the real estate industry," Greis said. “We look forward to supporting their growth with our expertise in the commercial real estate sector.”

KUGU’s partnership with Gewobag ID, the innovation arm of Berlin-based housing company Gewobag AG, further strengthens its position in the real estate sector. Sven Harke-Kajuth, Managing Director of Gewobag ID, highlighted KUGU’s agility and expertise in decarbonizing real estate. “KUGU’s smart solutions will play a crucial role in helping the real estate industry meet its decarbonization goals,” Harke-Kajuth said.

The addition of Michael Lowak and Axel Müller to KUGU’s advisory board is another major step in the company’s growth strategy. With decades of combined experience in energy and real estate, Lowak and Müller bring invaluable insights into scaling KUGU’s impact across the industry.

Expanding Operations and Impact

The €8.5 million funding will be used to enhance KUGU’s product offerings, grow its operations, and expand its team. Christopher von Gumppenberg, co-founder and Managing Director of KUGU, expressed excitement about the company’s potential. "Our decarbonization solutions are already delivering significant results, and this investment will allow us to scale even further," he said. "We are committed to expanding our product portfolio and optimizing energy systems for more buildings."

KUGU plans to optimize 50,000 buildings on its platform in the near future, which would result in the reduction of more than 100,000 tons of CO2 emissions annually. This will position KUGU as a leader in the real estate industry’s green transition, helping property owners meet stringent environmental regulations while cutting operational costs.

Niko Mikac, co-founder and Managing Director of KUGU, shared his optimism for the company’s next growth phase. “This investment allows us to accelerate our mission and bring energy-efficient solutions to a wider audience,” Mikac said. “We are poised to make a lasting impact on the real estate industry by reducing emissions and energy consumption.”

Investor Confidence and Future Prospects

The success of this Series A funding round underscores the growing investor interest in the intersection of PropTech and sustainability. KUGU’s ability to offer innovative solutions that address the urgent need for decarbonization in the real estate industry, combined with its proven track record, positions the company for continued success.

Backed by a diverse group of strategic investors, including Tengelmann Ventures, Gewobag ID, and others, KUGU is well-positioned to expand its reach and lead the digital transformation of the real estate sector. With increasing pressure on the industry to reduce its carbon footprint, KUGU’s platform is set to play a pivotal role in helping real estate companies meet their sustainability goals.

KUGU’s successful Series A financing round represents a key milestone in the company’s journey to revolutionize energy efficiency in the real estate sector. With its innovative digital solutions, KUGU is leading the way in decarbonizing real estate and providing sustainable, cost-effective energy management tools to property owners. The company is now positioned to scale its operations, expand its impact, and continue driving the green transition in real estate. As the demand for energy-efficient solutions grows, KUGU is poised to play an essential role in shaping the future of the industry.