EIB provides €12.5m to support EVUM Motors’ development and expansion plans
EVUM Motors, which was founded in 2017 as a spin-off of a research project at the Technical University of Munich, is a startup that develops and manufactures electric commercial vehicles for niche applications.
The European Investment Bank (EIB) is providing €12.5 million to support EVUM Motors’ commercial vehicle development and its European expansion plans. The electric commercial vehicle manufacturer has also raised a further €7.5 million from new investors. Its existing investors have also increased their investments following the successful market launch.
EVUM Motors, which was founded in 2017 as a spin-off of a research project at the Technical University of Munich, is a startup that develops and manufactures electric commercial vehicles for niche applications. The company’s core customers are in agriculture, municipal services and industrial intralogistics, but its vehicles also serve the tourism and last-mile delivery sectors. More than 400 vehicles are already in use since the market launch.
Greater environmental awareness and fossil fuel price increases are having a positive impact on business development. EVUM Motors’ aCar has been in production since the end of 2020 in Bayerbach bei Ergoldsbach in Lower Bavaria.
The EIB financing is an important investment for EVUM Motors that will enable it to rapidly increase the production of light electric vehicles in Germany and expand to other markets, complementing the company’s equity participation. The financing structure will help the company to expand quickly without diluting its investor base too much. The new funds will be used to scale the business in existing markets and to expand into neighbouring markets in Europe.
The financing comes under the EIB’s venture debt programme, which is tailored to the specific financing needs of high-growth innovative companies. It is secured by a guarantee from the European Fund for Strategic Investments (EFSI), also known as the Juncker Plan.
EIB Vice-President Ambroise Fayolle, who is responsible for EIB operations in Germany, said: “It is impressive what has been achieved in just five years since the startup’s creation. It is already generating significant sales and is on its way to becoming a medium-sized company. EVUM Motors is making a major contribution to the reduction of greenhouse gas emissions and to a sustainable economy.”
Founder and Chief Executive Officer Sascha Koberstaedt is confident that “due to the very high demand, the new investment gives us the potential to further scale the business and, most importantly, to continue to grow internationally. With the new financing, we now have the resources to achieve this growth and to further professionalise our young company.”
Founder and Chief Executive Officer Martin Šoltés highlighted the new possibilities: “We can increase production efficiency and also look into new products, solutions and target groups.”