Octopus Electric Vehicles, a subsidiary of the Octopus Energy Group, has secured a funding deal worth £150 million from Pollen Street Capital, boosting its efforts in the electric vehicle (EV) market. The majority of the funds will be allocated to support Octopus’ EV salary sacrifice program, which was launched in 2021.
Known as the flagship offering of Octopus, the EV salary sacrifice program is likened to a cycle-to-work scheme but for cars. By participating in this initiative, drivers can enjoy monthly savings of 30-40% on brand-new electric vehicles. Octopus provides a convenient all-in-one service that includes the provision of the EV, charging equipment, and access to discounted energy tariffs.
With this latest deal, Octopus Electric Vehicles has now surpassed £650 million in total funding for its EV endeavors within just a two-year span. The British energy company, renowned for its exclusive use of renewable energy sources, proudly reveals that it has assisted over 3,000 companies in implementing electric car employee benefit schemes. Some of its notable clients include McLaren, Nando’s, and Zoopla.
The impressive track record of Octopus Electric Vehicles in the EV sector was a key factor that attracted Pollen Street Capital. As an alternative asset manager specializing in credit strategies and senior secured, asset-backed investments, Pollen Street has a strong background in financing projects related to the energy transition. Over the past 18 months alone, it has successfully completed four transactions supporting the expansion of electric vehicle fleets.
Matthew Potter, a Partner at Pollen Street Capital, expressed his satisfaction with the collaboration, stating, “Octopus are an innovative business which has gone from strength to strength, and we are delighted to support their next phase of growth.”
Octopus Electric Vehicles has experienced remarkable growth, witnessing a tenfold increase in its workforce since May 2021. The company proudly emphasizes that it has generated over 225 new green jobs across multiple offices in London, Weybridge, Brighton, and Manchester. Additionally, Octopus has expanded its operations to the United States with the recent launch of Octopus Electric Vehicles in the American market.
Fiona Howarth, CEO of Octopus Electric Vehicles, highlighted the growing interest among drivers in switching from traditional gas-guzzling cars to electric vehicles. She emphasized the benefits of EVs, including their enjoyable driving experience, positive environmental impact, and potential savings of over £1,000 per year on fuel costs. Howarth also noted that the increasing demand for EVs makes the UK an attractive destination for EV charging infrastructure investments and a hub for new electric car brands.
