ChargePoint Raises $127 Million To Capitalize On The Unexpected Surge In Electric Vehicle Demand

ChargePoint Raises $127 Million To Capitalize On The Unexpected Surge In Electric Vehicle Demand

In August 2020, ChargePoint, an electric vehicle (EV) charging hardware, software and services supplier, announced that it had completed an extension to its Series H round of funding, adding $127 million. This brings its total raised to $660 million since its founding in 2007. It will use this funding to expand its commercial and fleet portfolio in North America and Europe, which currently host over 114,000 charging stations from the supplier.

Over the past five years, the EV services sector has continued to attract vast amounts of funding, as investors look to stake out a position in the nascent but rapidly growing sector. Sale volumes for EVs have continued to grow during this time supported by government grants and improving battery range. Through the COVID-19 period, there has been a surprise surge in EV sales despite supply chain challenges and the global recession. At the start of September 2020, for example, JATO reported that across Europe, EV registrations were up by almost two-thirds in June 2020 compared to June 2019. This contrasts with registrations of petrol and diesel cars, which fell by one third compared to the previous year. Many in the sector attribute this uptick to the timing of new subsidies, such as the €4,000 grant now available in Berlin.

Energy services firms from all backgrounds should take note of the continuing momentum in the EV sector and the improving economics for customers. With low market growth in mature segments, such as energy monitoring services and energy efficiency project implementation, the growth of EV charging represents a promising new market to explore. Even before the pandemic, Verdantix forecasted that the EV charging infrastructure market would grow in double digits for the first half of the 2020s. Indeed, UK energy services firm SMS invested in an EV charging solution at the start of 2020, to reduce its reliance on revenue from energy meter reading services. Energy companies are also entering the market. BP acquired Chargemaster in 2018, ENGIE acquired ChargePoint Services in 2019, and EDF acquired Pod Point in 2020.

With shifting consumer preferences, an expansion of green subsidies from governments and bullish investor appetite, the future of the EV charging hardware, software and service segments is one to watch. To find out more about our market forecasts and commentary, read our recent report: UK Energy Services Market – 2020 Update.