How EV Charging Has Shaped Up in 2023

Few tech sectors have undergone as much radical transformation as the automotive space. Our latest M&A report summed it up in its very first sentence: “The global automotive industry continues to see tremendous disruption in the makeup of investors and buyers who are vying to own and supply the vehicle of the future.”

These players are focusing on a number of key categories within autotech, including autonomous driving technology, new modes of mobility, and the fiercely competitive EV charging subsector. When it comes to the latter segment, we’ve seen a surge in M&A deals targeting EV infrastructures over the past few years, with an all-time high figure of 13 deals seen in 1H2022.

Let’s delve into some of the most significant acquisitions, fundraises and innovations to have unfolded this year, kicking off with a purchase by a household name.

One of the major EV charging deals of the year came early, back in January, when Shell – yes, the petrochemical colossus, not some plucky young tech company – snapped up EV charging network firm Volta for $169 million.

The deal came amid a general push by legacy fuel companies like BP and Total to get in on the burgeoning EV sector, in a tacit acknowledgement that the future of transport lies beyond fossil fuels. This activity mirrors the race among legacy vehicle manufacturers to plant their flags in the EV space alongside EV pioneers like Tesla.

San Francisco-based Volta boasted Leonardo DiCaprio as an early backer, with the Hollywood star noting that the startup was playing an integral role in accelerating the move beyond ‘a carbon-based economy’. The company has gone great guns since then, and its acquisition provides Shell with a network of over 3,000 charge points across dozens of US states, as well as a development pipeline of 3,400 additional charge points.

What’s more, it allows Shell to generate advertising turnover courtesy of the digital screens installed on Volta charge points – an underreported revenue prospect for EV networks.

The EV charging subsector doesn’t just provide opportunities for owners and operators of networks. It’s also a fertile field for startups specialising in providing software tools for the design and planning side of things.

A case in point is Monterra, a San Francisco-based tech startup which has very recently completed a $2.5 million pre-seed round. The firm’s platform, intended for use by engineers and field technicians, optimises the process of designing and creating charging networks.

It allows workers to record and annotate data on an app while they assess potential charge sites, as well as map out power sources and wiring networks, auto-generate sales proposals, and automatically calculate costs based on site visit data and site design.

The words of Monterra’s CEO point to the opportunities for founders who can leverage tech to make life easier for those tasked with creating this essential infrastructure: “In recent years, the industry has seen a lot of innovation across vehicle, battery, and charging technologies but not enough to support the installers… to help electricians, developers, and engineers work more efficiently, build faster, and grow their business.”

Another area where software startups are thriving is EV charging management. A case in point is Fuuse, a Lancaster-based company which racked up $3.1 million in investment back in May.

Boldly proclaiming itself to be the “power behind EV charging”, Fuuse provides a charge point management system which allows operators to control access to their networks, set operating times, manage the discoverability of their charge points on mapping tools like Google Maps, and manage tariffs and subscriptions.

Moreover, the platform allows operators to perform hard and soft resets, track problems that rectifying, and generally keep their networks running smoothly. Only a few years old, the company already counts the likes of British Airways and water company United Utilities as clients. The new funding is intended to help Fuuse expand its footprint in the UK and enter foreign markets by the year’s end.

One of the most talked-about EV-focused startups in Europe has been GoPlugable, the Belfast-based firm which provides a platform for people to share their home charging points. In the words of co-founder Maebh Reynolds, one of the few female founders in the EV startup space, GoPlugable is “the AirBnB of electric vehicle home chargers.”

She took inspiration from the paucity of charge points, and from anecdotal accounts of EV drivers paying friends and neighbours to use their charge points on an ad hoc basis. GoPlugable formalises this process, allowing users to manage and monetise their facilities on their own terms.

GoPlugable has so far raised tens of thousands from grants and competitions, including winning top prize at the 2023 Invent awards. Thanks to the company’s innovative application of sharing economy principles to EV, we expect that it will be  in line for funding rounds in the near future.

Our director Michel Annink rounded off our latest autotech report by emphasising that, “with the world very rapidly moving to electric vehicles, the demand for affordable EVs is growing fast.” The same is true of tech firms in this space, and the time is ripe for companies to provide tools for managing analytics, develop new charging solutions, and/or leverage AI to optimise all aspects of EV charging.

If you’re a founder or senior decision maker in this space, and interested in what opportunities the M&A market may afford, get in touch with Michel Annink for insights and guidance.