EV startup Volta Trucks in advanced talks to secure €250m funding
Swedish electric truck maker Volta Trucks is in advanced talks to raise €250 million in a late-stage funding round, as reported by Reuters.
The funding discussion involves large asset managers and corporate investors, with possible participation from existing investors. CEO Essa Al-Saleh said the startup is working with advisers from Perella Weinberg Partners to secure the funding.
The startup’s existing investors include Ernesto Bertarelli’s investment firm B-Flexion, Kuwaiti supply-chain service provider Agility, and New York-based hedge fund Luxor Capital.
All existing investors declined to comment regarding the new funding round, save for B-Flexion, whose spokesperson said the investment firm remained “wholly committed” to the EV startup.
Saleh explained that the new funding round would be the startup’s last capital raising before an initial public offering (IPO) that could happen as soon as 2024. Based on Volta’s projection, it will reach a break-even point by 2025.
Securing funding amid declining investments
Venture capital firm PitchBook Data has revealed that funding for European startups went down by 18.6 percent last year compared to the year before due to high interest rates and the Ukraine War. Electric vehicle startups were among those affected by the situation, making it harder for them to attract investors as they compete with big corporations.
Volta just concluded a Series C funding round worth around €230 million last year, pushing up the company’s valuation to €600 million. However, Al-Saleh declined to provide a valuation for the ongoing equity raise because the terms had not been finalised.
Headquartered in Stockholm, Volta Trucks was established in 2017 to accelerate the transition to clean energy and turn cities worldwide greener.
Al-Saleh claimed that Volta had amassed €1.5 billion worth of preorders for its 16-tonne Volta Zero urban e-trucks and future models for the next few years.
Commercial production for the Volta Zero will start in Q2, with €90 million worth of orders placed for 2023. Al-Saleh said the startup had already sourced all necessary parts for large-scale production.
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