Volta lands $125M in Series D funding to accelerate EV charging station network
Volta certainly recharged its finances to begin 2021.
The Emerging 8 honoree previously highlighted in Auto Fin Journal and developer of commerce-centric electric vehicle charging networks announced an oversubscribed Series D financing of $125 million. Volta said this week that Goldman Sachs acted as exclusive placement agent to the company in connection with the financing.
Volta builds and operates an EV charging network with one of the highest utilization rates in the United States. Strategically placed in front of essential businesses such as grocery stores, pharmacies, banks and hospitals, Volta’s EV network supports a larger consumer trend toward vehicle electrification by placing fueling stations in parking lots directly where consumers already spend their time and money.
Currently located in 23 states and more than 200 municipalities, Volta highlighted that its unique approach has gained significant acceptance and penetration in the market.
“The electrification of mobility is one of the largest infrastructural shifts of our generation and Volta’s charging network is ready to anchor the accompanying consumer behavior that will change along with it,” Volta founder and chief executive officer Scott Mercer said.
“As we transition out of the carbon economy, we will see a fundamental transformation of our existing fueling infrastructure,” Mercer continued. “Businesses anticipating this shift can take advantage of a revenue transfer from gas stations to retail locations in the community where consumers go, live, shop and play.”
Unique to the EV market, Volta’s business model centers around evolving spending habits caused by the move to electric vehicles by building charging infrastructure that reinforces the desired behavior at each location.
Volta’s charging stations feature 55-inch digital displays, doubling as a sophisticated media platform providing brands a way to reach millions of shoppers seconds before they enter the store to make a purchase. These sponsor-supported charging stations provide free energy to customers who are able to plug in their vehicles where and when they shop.
Volta’s business partners who install charging stations experience immediate returns; they report an increase in spend, dwell time and engagement on site.
The Series D fundraising capped a banner timeframe for Volta, bringing the company’s total equity financing to more than $200 million. The capital raise will further accelerate Volta’s efforts to unlock the value of their contract portfolio and increase its investment in product, engineering and network infrastructure. It will also allow Volta to begin its international expansion.
“As consumer interest in environmental initiatives takes hold across the economy, Volta is positioning itself as a top-of-mind brand in the electric vehicle space,” Volta co-founder and president Chris Wendel said.
“Volta is accelerating the future of infrastructure as a catalyst with its unique business model that brings a differentiated value proposition to our real estate and retail partners,” Wendel continued. “By bringing charging stations to essential businesses, our end user will increase their dwell time, engagement and spend.”
Volta insisted that its approach is already gaining significant acceptance and penetration in the market. The company has signed agreements with well-known property owners including Albertsons Companies, Giant Food, Regency Centers, Wegmans and Topgolf.
In addition, Volta’s media network has attracted some of the world’s most notable brands including General Motors , Hulu, Nestlé, Polestar, Porsche and Unilever.
“Since our initial investment in Volta in 2018, excitement and interest in electrification — and specifically solving for public charging solutions — has continued to gain momentum,” said John Tough, managing partner at Energize Ventures, a major and existing investor in this round.
“Our conviction in this team has similarly grown, and we believe Volta is poised to lead this market as the most capital-efficient and highly utilized EV charging network in the country,” Tough added in the news release.