French startup Cone has signed a multi-year financing partnership with DIF Capital Partners to roll out more EV charging stations and double its overall growth.
It’s a $180 million equity and quasi-equity deal that will be phased in from 2022 to 2030. ZePlug yesterday also announced significant investment, but ZePlug is targeting a different market with partnerships with residential and office buildings.
Today’s news is extremely important because Bump operates with a capital-intensive business model. The company has already set up 300 charging stations and plans to deliver another 2,000 charging stations by the end of 2023.
Raises finances and manages the installation of new charging stations so that there are no upfront costs for their partners. After that, the company is engaged in maintenance and operation. A reduction in kWh is then required, which gradually covers the investment costs and generates some profit for the company.
Like solar panels, it may take 5, 10 or 15 years before a charging station becomes profitable. It’s an infrastructure company, which means it’s a long-term business.
Bump has two types of customers. It works with retailers, malls, hotels and various companies that own parking spaces to roll out charging stations for anyone looking for a charging station.
It also works with logistics companies and other B2B customers who need to switch to electric vehicles. They get their own charging spots for their Bump-driven cars. 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 Oudeau told me. “You can buy a server and diskette or pay a monthly subscription for each user.”
And it’s true that switching to electric cars can be expensive. 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 stations.
Vehicles should not be the main investment for logistics companies. Many companies choose to lease cars, and they would rather pay a little more to charge their cars if they don’t have to do anything to manage 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 control the charging stations. If it’s a hardware issue, third party companies can also be contacted 24/7 in case they need to be there in person to fix something.
With today’s new funding, Bump plans to deploy 25,000 charging stations by 2030. The startup will also hire a hundred people.