French start-ups Crash signed a multi-year funding partnership with DIF Capital Partners to roll out more electric vehicle charging stations and double overall growth.
It’s a $180 million equity and quasi-equity deal that will be progressively unlocked from 2022 to 2030. Yesterday, ZePlug also announced a significant investment – but ZePlug focuses on a different market with partnerships with residential and office buildings.
Today’s news is extremely important because Bump operates with a capital-intensive business model. The company has already created 300 charging stations and plans to ship another 2,000 by the end of 2023.
Accumulate funds and manage the installation of new charging stations so that they do not have to pay upfront costs to their partners. The company then handles maintenance and operations. After that, kWh must be cut, gradually covering investment costs and generating some revenue for the company.
Like solar panels, it can take 5, 10 or 15 years before a charging station becomes profitable. It’s an infrastructure company, which means it’s a long-term business.
Bump has two types of customers. It works with retailers, shopping malls, hotels, and various companies that own parking spaces to deploy charging stations for anyone looking for a charging station.
It also works with logistics companies and other B2B customers who need to switch to electric vehicles. They have their own charging point for their vehicles managed by Bump. Customers include StarService, TopChrono, Stuart, Europcar, Zity, Bolt and Marcel.
“I often compare our service to Salesforce in the 2000s,” co-founder and CEO François Oudot told me. “You can buy a server and a floppy, or you can pay a monthly subscription per user.”
And it is true that switching to electric vehicles can be expensive. You have to buy new cars and trucks – electric cars tend to be more expensive than gas cars. Then you have to pay a construction company to install the charging stations.
Vehicles are not a core investment for logistics companies. Many companies choose to rent a car and they would rather pay a little extra to charge the car if they don’t have to do anything to manage their charging stations.
Bump himself works with major construction companies to install charging stations. They have their own software stack and a team that can remotely monitor charging stations. If it’s a hardware problem, third-party companies can also be contacted 24/7 in case they need to go there in person to fix the problem.
With new funding now, Bump plans to deploy 25,000 charging stations by 2030. The startup will also hire a hundred people.