EV charging operator Bump unlocks $180 million • TechCrunch
French startup Collide A multi-year financing partnership has been signed with DIF Capital Partners to launch more electric vehicle charging stations and double on overall growth.
This is a $180 million equity and quasi-equity deal that will be gradually unlocked between 2022 and 2030. Yesterday, ZePlug also announced A major investment – but ZePlug focuses on different markets working with residential and office buildings.
Today’s news is important because Bump operates on a capital-intensive business model. The company has built 300 charging stations and plans to deliver 2,000 more by the end of 2023.
Increase funding and manage the installation of new charging stations so their partners don’t have to pay upfront costs. After that, the company is responsible for maintenance and operations. Then cut the kWh, gradually cover the investment costs and generate some revenue for the company.
Like solar panels, charging stations can take 5, 10 or 15 years to become profitable. It’s an infrastructure company, which means it’s a long-term business.
Bump has two types of clients. It has partnered with retailers, malls, hotels and various companies with parking spaces to launch charging stations for anyone looking for them.
It also works with logistics companies and other B2B clients that need to switch to electric vehicles. They have their own charging points for vehicles managed by Bump. Clients include StarService, TopChrono, Stuart, Europcar, Zity, Bolt and Marcel.
“I often compare our products to Salesforce in the 2000s,” co-founder and CEO François Oudot told me. “You can buy servers and floppy disks, or you can pay a monthly subscription fee for each user.”
Indeed, switching to electric vehicles can be costly. You have to buy new cars and trucks – electric cars tend to be more expensive than gasoline cars. Then you have to pay the construction company to install the charging station.
Vehicles should not be a core investment for a logistics company. Many companies choose to lease a car and would rather pay a little more to charge their car if they don’t have to do anything to manage their charging station.
Bump itself works with major construction companies to install charging stations. They have their own software stack and a team that can monitor charging stations remotely. If it’s a hardware issue, third-party companies can also be contacted 24/7 in case they need to go there in person to resolve the issue.
With today’s new funding, Bump plans to roll out 25,000 charging stations by 2030. The startup will also employ 100 people.