Helsinki-based sustainable technology company Capalo AI has raised €11 million in Series A funding to accelerate the rollout of its AI-driven virtual power plant platform and scale the optimisation and trading of battery energy storage systems across European electricity markets.
The round was led by Heartcore Capital, with participation from Tesi (Finnish Industry Investment). Existing investors VentureFriends, PROfounders, Inventure, and Innovestor all re-participated, alongside several family offices. The raise follows Capalo AI’s €500k pre-Seed round in 2023.
Intelligence as the missing layer in Europe’s energy transition
As Europe rapidly adds solar and wind capacity, electricity grids are coming under increasing strain. Capalo AI positions software intelligence as the critical layer needed to complement physical grid expansion.
“The global clean energy transition is moving forward at an unstoppable pace, with solar power leading the way. However, infrastructure alone cannot solve the challenge of grid resilience,” says Henri Taskinen, co-founder and CEO of Capalo AI. “Intelligently orchestrated battery storage is now essential to accelerating renewables while maintaining a stable and affordable energy system.”
Capalo AI connects large-scale battery assets and renewable generation across multiple locations into a single virtual power plant. By combining forecast data with proprietary AI models, the platform optimises when batteries charge, discharge, and trade power across electricity markets in real time.
Rapid growth in battery capacity and revenues
Founded in 2022 by Henri Taskinen, Riku Kukkonen, Teemu Lappalainen, and Eerik Jauhiainen, Capalo AI focuses on maximising the value of battery energy storage systems across all market conditions.
In 2025, the company’s total contracted battery capacity surpassed 1 GW, representing more than a fivefold increase in less than a year. Over the same period, Capalo AI reports a fivefold increase in revenue and a doubling of its team size, reflecting growing demand for grid flexibility and battery optimisation services.
According to the company, rising electricity demand from data centres and electric vehicles, combined with weather-dependent energy generation, is driving greater volatility and higher system costs. Virtual power plants and intelligent battery orchestration are increasingly seen as cost-effective alternatives to large-scale grid reinforcement projects.
Strong investor appetite for energy optimisation platforms
Capalo AI’s Series A arrives amid sustained investment in European startups focused on energy storage, virtual power plants, and AI-driven optimisation. Recent funding rounds include Belgium-based LIFEPOWR’s €5.65 million raise for virtual power plant technology, Switzerland-based enshift’s €18.5 million round, and €24 million in EIB financing secured by TWAICE to expand predictive battery analytics. In the Netherlands, Dexter Energy raised €23 million, while storage developer Return closed a €300 million growth round.
Within this landscape, Capalo AI operates at the software and market-optimisation layer, addressing grid flexibility and battery utilisation rather than capital-intensive infrastructure deployment.
“European industrial competitiveness depends on stable, low-cost power,” says Paulina Koschitz, Principal at Heartcore Capital. “Capalo AI is building critical digital infrastructure to operate and optimise battery assets at scale, positioning itself as a coordination layer for the next generation of European energy markets.”
Scaling across Europe
Capalo AI currently operates in Finland, Sweden, Latvia, and Lithuania, working with infrastructure investors and independent power producers such as FRV, Renewable Power Capital, Ardian-owned eNordic Evergreen, and MW Storage.
With the new funding, the company plans to expand into multiple additional European markets in 2026 and significantly grow its customer base. The capital will also support further development of its optimisation and trading capabilities for both standalone battery systems and batteries co-located with wind and solar assets.
“The demand for battery energy storage systems continues to grow alongside the clean energy transition,” says Jan-Patrick Haikkola, Investment Manager at Tesi. “Capalo AI has already established a strong position in its target markets, and we look forward to supporting its international growth.”