Electric four-wheel drive manufacturer Munro Vehicles has raised a £750,000 pre-seed investment from Elbow Beach Capital.
Munro will use the pre-seed funds to hire key personnel, develop its order book, expand its sales network and continue developing its prototype vehicle.
Munro is making the first fully electric 4×4 vehicle designed and built in the UK. Its first vehicle, the Mark 1, is targeted to go into production later this year with first deliveries beginning in 2023.
Production of the Mark 1 will be in Glasgow, which Munro said will create 300 jobs. The Mark 1 is expected to carry over 1,000kg and have a range of over 280 kilometres (approx 173 miles) on one charge.
“This investment is beneficial for the local economy and will allow us to source as many of our parts from within the UK as possible, cutting down on carbon emissions from shipping,” said Russ Peterson, CEO, Munro.
According to Elbow Beach Capital, there are 220,000 farms and 2,000 active mines in the mining, forestry and agriculture industries that require all-terrain vehicles.
Farming is responsible for 10% of all UK greenhouse gas output, including 1.7% of all carbon dioxide emissions and mining is responsible for 4-7% of all global emissions. With its investment in Munro, Elbow Beach Capital hopes to reduce this issue in an area that has been overlooked in electrification.
“Elbow Beach Capital exists to identify and support companies challenging carbon-intensive industries and delivering practical solutions, Munro is a fantastic example of this,” said Jon Pollock, CEO, Elbow Beach Capital.
Further funds will be required later in the year to scale its production line, recruit assembly staff and complete the first deliveries of pre-ordered vehicles.
By 2030 Munro expects a demand of 5,000 vehicles per year and to be cashflow positive by 2025, allowing for an international expansion.
Elbow Beach capital continues to spend its £20m venture vehicle it launched last month to back impact startups in the UK and globally.
In 2021 UK impact tech startups raised $2bn, up from £1.7bn in 2020.