Berlin-based renewable energy supplier Trawa recently raised €10 million in a seed round led by Balderton Capital, bringing its total capital raised to over €12 million. Trawa aims to simplify energy purchasing and management for small and medium-sized enterprises (SMEs) by leveraging AI technology.
The brutal invasion of Ukraine by Russia in February 2022 took businesses dependent on oil and gas by surprise, making renewable energy crucial for survival. This crisis sparked the idea behind Trawa.
Trawa’s value proposition is to streamline the process of buying renewable energy for SMEs. It achieves this through two main features: an AI-powered platform that enables businesses to purchase renewable energy and downstream data from customers about their peak energy usage times.
Europe’s Energy Crisis
Europe’s ongoing energy crisis has seen electricity prices soar two to three times higher than in the U.S. This surge has also impacted manufacturing in the Eurozone, which has been in decline for over a year. Specifically, German industry is expected to decline by 1.5% this year due to higher energy prices and interest rates.
While renewable energy can help businesses mitigate high energy costs, many companies face challenges in switching to green energy sources due to the complexity of defining green energy and ensuring a consistent supply.
The Role of AI in Green Energy
Trawa’s co-founder and CEO, David Budde, conceptualized using AI to streamline the green energy supply while at Bain and Company. He observed that rising energy costs and stringent sustainability regulations were simultaneously hitting businesses.
“Prices skyrocketed, volatility increased, and their core business was being hit. All of a sudden, their products were no longer profitable because the energy costs were rising so fast,” he told TechCrunch. “At the same time, the European Commission and the German government were pushing further and stronger regulation. Now, businesses had to deal with both. In the past few years, if you wanted green electricity, it meant having to pay a premium. That’s exactly where we come in.”
Empowering SMEs with AI
Budde explained that Trawa equips SMEs, which often lack procurement expertise in energy, with tools to structure their energy purchasing. Trawa’s AI creates an optimal combination of power from various sources to match the buyer’s consumption patterns. The platform enables Trawa to purchase electricity in installments at staggered times, resulting in significant cost savings.
Additionally, Trawa’s management software allows companies to integrate their own rooftop solar systems or batteries. The startup claims that this combination of AI-powered purchasing and management software can enable companies to save up to 30% on their annual energy costs.
Trawa already serves several industrial customers in the DACH region, including textile manufacturer SETEX-Textil, Amano Hotel Group, solar energy company Sunmaxx, logistics company Loxxess, and automotive supplier Coroplast Group.
Market Impact
“In the face of the climate crisis and volatile energy pricing market, renewable energy is a way for companies to take control of their energy security,” said James Wise, general partner at Balderton Capital. “Trawa offers companies a bespoke solution for energy procurement, shielding SMEs from price explosions, helping them make the most of investments in assets like smart batteries and solar power, and providing granular data for ESG reporting.”
German climate tech investor AENU also participated in the round, alongside previous investors Speedinvest, Magnetic, and TinyVC.
Trawa is poised to make a significant impact by simplifying renewable energy purchasing for SMEs, providing them with the tools to navigate the complexities of green energy and save on costs amidst Europe’s ongoing energy crisis.
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