The hottest electric vehicle startups of UK in 2021
In a latest development, Arrival, a London-based firm that manufactures electric vehicles (EV) has announced a huge valuation of $13.6 billion (nearly £10 billion) and has become a publicly listed company.
With this, Arrival secured the highest ever valuation for a British company making its debut on the New York Stock Exchange, according to the Times. The bus and electric van startup has more than 1,800 employees based in the US, UK and Germany, and is reportedly said to begin trialling its vans with customers this summer. Further, it will also launch bus trials with UK transport operator first in the four quarters of this year.
This news about Arrival going public comes at a time when there is germination seen in the electric vehicle market segment. As per data from the Society of Motor Manufacturers and Traders (SMMT), there has been a year-on-year growth of 180% in electric vehicles’ sales. On the other hand, the sales of regular cars have dropped during the pandemic crisis.
In the meantime, electric vehicles will be welcomed in the UK as Prime Minister, Boris Johnson announced as a part of his green plan last year that there will be a ban on new cars and vans that operate on fuel from 2030.
With so much happening in the EV space, we look at the key UK startups contributing to the sector with their innovative products.
Arrival
Founder/s: Denis Sverdlov
Founded year: 2015
Funding: £490M
London-based Tesla rival, Arrival develops and manufactures zero-emission, public transport vehicles. The startup also produces software, materials, components, and scalable skateboard platforms.
Back in November, the British firm raised $400 million (nearly £342M) in private investment in public equity or PIPE from investors that included Fidelity Management & Research Company, Wellington Management, BNP Paribas Asset Management Energy Transition Fund and funds managed by BlackRock.
Riversimple
Founder/s: Hugo Spowers
Founded year: 2013
Funding: £4.3M
UK-based hydrogen car company Riversimple comes with the intention to provide personal mobility with zero environmental impact. The hydrogen car emits a tiny amount of water and takes only a few minutes to refuel the hydrogen.
In October 2020, Welsh corporate finance company Gambit CF was appointed to assist with the £150 million funding round. This will be used to set up two plants – one to focus on the vehicle’s commercial production in 2023 and the other on the new hydrogen van for 2024.
Arc
Founder/s: Mark Truman
Founded year: 2016
Funding: NA
This British startup from Coventry has developed Arc Vector, which is touted to be the safest and cleanest electric bike by a British startup. It’s a premium motorcycle, can accelerate from 0-60mph (0-100kph) in less than three seconds, and it has a top speed of 125 mph / over 200 kilometres per hour.
eFOLDi
Founder/s: Sumi Wang
Founded year: 2009
Funding: £3.8M
London’s eFOLDi is a manufacturer of folding and compact mobility e-scooters. The startup’s mission is to build an iconic brand for people with reduced mobility and the eFOLDi scooter is the very first of many smart products they have launched.
In May last year, eFOLDi now known as Suntech pocketed £2.5 million from Guinness Asset Management.
VRCO
Founder/s: Daniel Hayes, Michael Smith
Founded year: 2015
Funding: NA
UK-based VRCO is developing a hyper luxury eVTOL high-performance aircraft. Called NeoXCraft, this is a unique electrical vertical landing and take-off vehicle. It will drive on roads and fly and land on water. The aircraft will feature autonomous flight, fast charging system, emergency parachute landing, and a cruise speed of 210mph. This luxury two-seater aircraft is in the second phase of its development. It is touted as Airvolution in action.
Enso Tyres
Founder/s: Gunnlaugur Erlendsson
Founded year: 2016
Funding: NA
Enso Tyres is a London startup that develops better tyres for electric vehicles. This startup is a circular business that drives innovation in the tyre industry. It creates cleaner and more energy-efficient tyres that are ideal for electric vehicles. The Enso tyres are made from environment-friendly, advanced raw materials. These tyres reduce the overall energy consumption of electric vehicles and extend the range.
Baro Vehicles
Founder/s: Carlos Escudero, Diego Rossi, Gabriel J O Giani Moreno
Founded year: 2015
Funding: £205K
Baro Vehicles is a London company that designs sustainable autonomous cars and connected, autonomous compact vehicles (CAcV). The company uses artificial intelligence to offer all people who love the comfort of a unique mobility experience. It works with the mission to free up time to perform other more productive or leisure activities and solve the problem of congestion in the big cities.
Zenobe Energy
Founder/s: Steven Meersman, James Basden, Nicholas Beatty
Founded year: 2017
Funding: £230M
London-based Zenobe Energy, previously known as Battery Energy Storage Solutions Limited is one of the largest UK-based independent owners and battery storage operators. The startup intends to support customers with a minimum of 500MWhr of additional grid-connected batteries and 1000 electric buses or vehicles, and the necessary infrastructure software systems in the next two years
In November last year, Zenobe Energy bagged $200M (nearly £150M) investment from Infracapital, M&G PLC’s infrastructure equity investment arm this year. Zenobe Energy aims to use the investment to accelerate the UK’s transition towards the use of a green energy system.
YASA
Founder/s: Tim Woolmer
Founded year: 2009
Funding: £43M
YASA is an Oxfordshire-based startup that makes e-motors for e-vehicles. The unique YASA motor technology is ideal for a range of mobile applications such as hydraulics replacement, power generation, traction and propulsion and hybridisation.
In 2018, YASA raised £15 million in growth funding from Universal Partners, Parkwalk Advisors and other existing investors. The company used these investments to increase its volume production capacity and address markets beyond automotive, including aerospace and marine.