Builder of world's largest EV charging network raises new round of funding
ChargePoint Inc., builder of the world’s largest electric-vehicle charging network, raised $127 million in its latest round of funding as the company adds more locations in the US and Europe.
The company has raised $667 million to date and plans to use the funds to expand its network, which has more than 115,000 charging spots worldwide. ChargePoint expects electric-vehicle sales to continue rising and has a goal of expanding its network to 2.5 million spots by 2025.
“These funds will help us continue to scale the business and chase opportunities," Chief Executive Officer Pasquale Romano said in an interview. “We can grow 50% a year for a decade."
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The latest round for ChargePoint comes as investors continue pouring money into electric-vehicle makers. Tesla Inc. shares have hit record levels and several EV startups have been bought by special purpose acquisition companies, or SPACs, that raise public funds in search of deals.
Lordstown Motors Inc. went public Aug. 3 by using a reverse merger with the SPAC DiamondPeak Holdings. And last week, General Motors Co. joined charger-network provider EVgo in moving to expand its infrastructure.
Some of ChargePoint’s early investors participated in the new round. They were Chevron Technology Ventures, American Electric Power, Clearvision and Quantum Energy Partners.
ChargePoint sells the charging hardware and runs the network and the payment app for consumers who use its equipment. The company doesn’t own the network. Its public, commercial and government customers own the chargers.
If a SPAC comes knocking, Romano said he will be careful because the company is growing and he wouldn’t want to sell too soon. Still, he said, ChargePoint is a way for investors to make a bet on electric-vehicle growth without having to place their money on one carmaker.
“We’re an index fund for electric vehicles," Romano said. “I don’t think anyone wants to sell short, so we’re looking at the best way to grow a lasting enterprise."
