French startup all of a sudden Signed a multi-year financing partnership with DIF Capital Partners to roll out more charging stations for electric vehicles and double growth in general.
It is an equity and quasi-equity $180 million deal that will be unlocked gradually from 2022 to 2030. Yesterday, ZePlug Also announced A significant investment — but ZePlug focuses on a different market with partnerships with residential and office buildings.
Today’s news is crucial because Bump operates with a capital intensive business model. The company has already built 300 charging stations and plans to ship 2,000 more by the end of 2023.
Bump funds and manages the installation of new charging stations at no upfront cost to their partners. After that, the company handles maintenance and operations. It then takes a cut on the kWh, which gradually covers the investment costs and generates some revenue for the company.
Like solar panels, a charging station can take 5, 10 or 15 years to become profitable. It is an infrastructure company, which means it is a long-term business.
Bump has two types of clients. It partners with retailers, malls, hotels and various companies that own parking spaces to roll out charging stations for those looking for a charging station.
It also works with logistics companies and other B2B clients who need to switch to electric vehicles. They get their own charging spot for their vehicles operated by Bump. Clients include StarService, TopChrono, Stuart, Europcar, Zity, Bolt and Marcel.
“I often compare our offering to Salesforce in the 2000s,” co-founder and CEO Francois Odut told me. “You can either buy a server and a floppy disk, or you can pay a monthly subscription per user.”
And it’s true that switching to electric vehicles can be expensive. You have to buy new cars and trucks — electric vehicles are more expensive than gas cars. You then need to pay a construction company to install the charging stations
Vehicles are not meant to be a key investment for logistics companies. Many companies choose to lease cars, and will pay a little more to charge their vehicles if they don’t have to do anything to operate their charging stations.
Bump itself works with large construction companies to install charging stations. They have their own software stack and a team that can remotely monitor charging stations. If it’s a hardware issue, the third-party company can also be contacted 24/7 if they need to be there in person to fix something.
With today’s new funding, Bump plans to launch 25,000 charging stations by 2030. The startup will employ 100 people.