Encso Raises €25M for SME Battery Storage Solutions

Munich-based startup encosa has successfully closed a €25 million funding round to accelerate its mission of making battery storage accessible and profitable for small and medium-sized enterprises (SMEs). The investment, which includes significant participation from Bayern Kapital through its Innovationsfonds II, marks a pivotal moment for the young company, founded in 2024.

The funding comprises a scalable debt facility and equity from a seed round, with Realyze Ventures taking the lead investor role. Other notable participants include Verve Ventures, Blum Ventures, Kopa Ventures, and pre-seed investors First Momentum Ventures, Redstone, Heliad, WEPA Ventures, and UnternehmerTUM Funding for Innovators. This substantial backing will fuel encosa's expansion of its AI-driven technology platform and solidify its presence in the German market.

encosa addresses a critical pain point for energy-intensive industries like chemicals, glass manufacturing, and mechanical engineering: the complexity and upfront investment typically associated with implementing battery storage systems. High energy costs are a significant burden for these businesses, and battery storage offers a pathway to optimize electricity procurement and generate revenue through grid services. encosa's integrated approach simplifies this by managing everything from solution selection and technical planning to regulatory approvals, installation, and ongoing operation.

The company's proprietary AI platform is designed to ensure economically optimal operation of the battery storage systems. It intelligently combines 'Behind-the-Meter' strategies for direct energy cost savings with 'Front-of-the-Meter' opportunities for revenue generation in electricity markets. This dual approach enhances the financial viability for clients, with typical amortization periods ranging from 18 months to five years, depending on consumption patterns and market dynamics. Clients can choose from flexible financing models including purchase, rental, or leasing.

“The adoption of battery storage by German SMEs is no longer a question of 'if,' but 'how quickly,'” stated Sascha Koberstaedt, co-founder and CEO of encosa. “We are democratizing access to this technology, enabling any business to reduce energy expenses and enhance grid stability without requiring upfront capital or specialized expertise.” The newly acquired capital positions encosa to fully penetrate the German market and prepare for international expansion.

Monika Steger, Managing Director at Bayern Kapital, highlighted the strategic importance of encosa's offering. “encosa is tapping into the sweet spot where the energy transition becomes truly beneficial for medium-sized companies – delivering predictable, lower energy costs and improved supply security. By bundling hardware, financing, and intelligent control, they significantly reduce the barriers to entry for businesses seeking to leverage market flexibility rather than being solely exposed to volatile energy prices.”

The German energy storage market is experiencing robust growth, driven by policy support for renewables and increasing grid stability concerns. SMEs represent a vast, largely untapped segment for distributed energy resources, and encosa's comprehensive solution is well-positioned to capture this demand. The successful seed round underscores investor confidence in encosa's ability to scale its innovative model and contribute to a more resilient and efficient energy infrastructure.