EVmo, a provider of vehicles to the rideshare, carshare and delivery gig economy industry, closed on $15 million in debt financing with Energy Impact Partners (EIP).
“We believe that our strategic alliance with Energy Impact Partners will facilitate EVmo’s growth across major US markets. As many as 500 fleet units will be added to our platform and deployed immediately, including the addition of more EVs, improving our EV car mix to 20%, with the objective to ultimately be a fully EV company. With further financing, we will endeavor to deploy 10,000 vehicles over an 18-24 month period,” Stephen Sanchez, CEO of EVmo, said.
At the margin, every $10 million in debt and or equity capital raised should enable EVmo to purchase approximately 4,000 vehicles with an 85%/15% car to van mix. This should translate to approximately $80 million in annual revenue for every $10 million of capital raised at the margin. The company anticipates scaling to a 25% EBITDA margin.
“This financing is truly remarkable, as it was accomplished in the absence of an equity capital raise,” Terren Peizer, executive chairman of the board for EVmo, said. “We have continually said that we will lean on debt and other non-dilutive financing in addition to equity capital. This is a high EBITDA model that supports debt financing that we believe will create proportionately greater returns to shareholders.”
“As part of Energy Impact Partners’ focus on mobility being an instrumental sector leading the energy transition, we are excited to announce our investment and partnership with EVmo,” Harry Giovani, CEO and managing partner of EIP Credit Strategies, said. “Through our financing, CEO Stephen Sanchez, together with the EVmo team, will be able to further scale the company’s electric fleet, providing an essential and transformational product to the electric gig economy.”
“With the growing demand tailwinds in the car rental space, Energy Impact Partners sees an incredible opportunity with EVmo to provide further access of electric vehicles to gig workers. We believe our financing will accelerate EVmo to become a leader in the electric car rental market,” Tal Sheynfeld, a partner at EIP Credit Strategies, said.
“I am extremely proud of our progress to this point in 2021 and fully expect continued efficient growth over the coming months. We have built a strong operating team and incredible partners. This combination is unmatched in the ride-sharing and logistics space,” Sanchez said.
ThinkEquity, a division of Fordham Financial Management, acted as placement agent for this debt financing.
