French startup Bump has signed a multi-year financing partnership with DIF Capital Partners to roll out more charging stations for electric vehicles and double the growth in general.
It is an equity and quasi-equity $180 million deal that will be progressively unlocked from 2022 to 2030. Yesterday, ZePlug also announced a significant investment — but ZePlug is focused on 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 built 300 charging stations and plans to send 2,000 more by the end of 2023.
Manages and manages the installation of new charging stations at no upfront cost for their partners. After that, the company handles the maintenance and operations. This is followed by a reduction in kWh, which progressively covers the investment cost and generates some revenue for the company.
Like solar panels, it can take 5, 10 or 15 years for a charging station 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 have parking space to introduce charging stations to anyone looking for a charging station.
It also works with logistics companies and other B2B clients that need to switch to electric vehicles. They get their own charging spots for their vehicles managed by Bump. Customers include StarService, TopChrono, Stuart, Europcar, Zity, Bolt and Marsel.
“I often compare our offering to that of Salesforce in the 2000s,” co-founder and CEO François Oudot 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 costly. You’ll have to buy new cars and trucks – electric vehicles tend to be more expensive than gas vehicles. Then you have to pay a manufacturing company to install the charging station.
Vehicles are not considered the main investment for logistics companies. Many companies prefer to lease cars, and they will pay a little more to charge their vehicles if they don’t have to do anything to manage their charging stations.
Bump itself works with major 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, third-party companies 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 have 25,000 charging stations by 2030. The startup will also hire a hundred people.