Octopus Electric Vehicles (OEV), the electric vehicle’s arm of Octopus Energy’s parent company, is seeking a £100m funding boost to fuel its growth amidst the rising production of eco-friendly vehicles. The company is collaborating with bankers to secure fresh funds from external investors over the next few months.
OEV is a subsidiary of Octopus Energy Group, a British residential energy provider that received a $5bn valuation in 2021. However, its recent acquisition of Bulb, which collapsed last year, has been challenged by competitors such as Centrica, the owner of British Gas, in a judicial review.
According to the Society of Motor Manufacturers and Traders, the number of electric vehicles produced in the UK in January increased by nearly 50% from the previous year. As a result, OEV’s funding drive comes at an opportune time.
OEV operates a salary sacrifice scheme, which it believes is a significant incentive for individuals to switch to electric vehicles. Its clients include major companies such as Dyson, Zoopla, and Bain & Company. The company is increasing its potential customer base by approximately 85,000 employees each quarter.
The firm is headed by CEO Fiona Howarth, who has previously served as an executive at BMW and Ovo Energy. Its competitors include Onto, Zenith, and LeasePlan.
Investec is advising on the fundraising, and Octopus Energy has declined to comment on the matter. OEV’s fundraising is expected to provide the company with the necessary resources to expand its operations and increase its market share in the electric vehicle sector.
