Capalo AI raises €11M to expand battery storage optimisation

Finnish sustainable technology company Capalo AI has
completed an €11 million Series A funding round to support the expansion of its
AI-powered virtual power plant across Europe and to scale the optimisation and
trading of battery energy storage systems. The round was led by Heartcore Capital, with participation from Tesi (Finnish Industry Investment), existing
investors VentureFriends, PROfounders, Inventure, and Innovestor, as well as
several family offices.

Founded in 2022 by Henri Taskinen, Riku Kukkonen, Teemu Lappalainen, and Eerik Jauhiainen, Capalo AI develops software that maximises
the value of battery energy storage systems across electricity markets. The
company combines high-quality forecasting data with AI-based models to optimise
the trading and operation of energy storage assets.

The rising share of weather-dependent energy sources such as
wind and solar, together with increasing electricity demand from data centres
and electric vehicles, is contributing to greater grid volatility and higher
system costs.

To address these challenges, Capalo AI aggregates
large-scale battery assets and renewable energy production from multiple sites
into a single virtual power plant, enabling real-time optimisation and trading
across electricity markets while supporting grid balance and asset performance.

According to Henri Taskinen, Co-founder and CEO of Capalo
AI, the global transition to clean energy continues to accelerate, with solar
power playing a central role, while electricity systems face growing pressure
to integrate new capacity and maintain reliability.

Infrastructure alone cannot solve this challenge,
intelligence is essential. Intelligently orchestrated battery storage is now
critical to accelerating the renewable energy ramp-up and building a pathway
toward a truly sustainable energy system,

Taskinen said.

Following the funding round, Capalo AI plans to
expand its international operations and further scale the optimisation and
trading of battery energy storage systems, including both stand-alone assets
and those co-located with wind or solar generation.

The company is currently
active in Finland, Sweden, Latvia, and Lithuania, and plans to enter additional
European markets in 2026 while continuing to grow its client base.