Spring Free EV, a financial technology company promoting and investing in the adoption of commercial electric fleets through fintech, recently announced the completion of a $31 million funding raise that includes a debt facility and a Series A equity investment led by Spring Lane Capital.
The company said that the financing will enable it to, by the end of 2023, double the number of EVs it has already put on the road, with the expectation of scaling to tens of thousands of vehicles on the road by 2025, according to the release. What’s more, the company said it expects to cut upfront costs of EV use by more than half.
“Our investment in Spring Free EV provides a highway for institutional investors to connect with the over 200,000 nationwide small and medium-sized commercial fleets, including rental fleets, car-sharing companies, taxi operators, ridesharing and delivery fleets looking to go electric, which is essentially an untapped multi-billion-dollar marketplace,” said Rob Day, Partner and Co-Founder, Spring Lane Capital. “Spring Free EV fills a major gap in the electric vehicle industry by developing and implementing financing solutions to make EV ownership possible for the smaller, ‘underserved’ commercial fleet owners. Their platform also provides the necessary additional value-added services to make cost savings real and achievable, eliminating the barriers for business owners to go electric. We are proud to partner with Sunil and his team of Silicon Valley rock stars.”
Spring Free EV operates across the US and specializes in small and medium-sized commercial fleets across the country that are looking to go electric. The company’s financing platform, EVInstaFleet, is designed to help business owners get the benefits of operating an electric fleet while saving money by reducing upfront costs and using a pay-per-mile subscription model for operating costs. The aim, reportedly, is to eliminate traditional high mileage fee penalties that can make commercial electric fleet operation cost-prohibitive, especially if the need is for driving long distances. The company accomplishes all of this through its proprietary fintech platform, which includes value-adds like provisioning tax benefits, telematics and institutional-grade asset management.
“This significant capital raise will help Spring Free EV get closer to our mission of putting tens of thousands of electric vehicles on the road by 2025 by making EV adoption the more cost-effective choice for small and medium commercial fleets across the country,” said Sunil Paul, CEO, Spring Free EV. “Spring Lane Capital’s participation is a strong accelerant for our strategy and also helps us open our financing marketplace to other investors who seek access to the fast-growing electric vehicle market, thanks to our innovative financing platform. In addition, our strategy also addresses important climate and social outcomes. We are looking to reduce CO2 emissions by one gigaton by 2030 and, by breaking through the affordability challenge that’s prevented EV adoption since day one, we are helping to democratize EV ownership for all commercial fleet owners.”