Octopus Electric Vehicles raises £650m to turbocharge electric car revolution
- Octopus’ electric vehicle business signs £150m funding from Pollen Street Capital, taking total funding raised for its EV leasing arm to more than £650m
- Comes as business arm hits 10x workforce growth milestone in the UK
London, 20th June 2023 - Octopus Electric Vehicles, part of the Octopus Energy Group, has agreed a deal for £150 million of funding from Pollen Street Capital (“Pollen Street”) as it continues to offer the best value package for drivers making the switch to an electric car.
The deal takes Octopus’ total EV funding raised to more than £650 million in just two years. Collectively, these cars will save more than 32,000 tonnes of CO2 per year while on the road - the equivalent of removing more than 11,500 fossil fuel cars.
The funds will primarily finance Octopus’ flagship EV salary sacrifice offer, which was launched in 2021. Like cycle-to-work but for cars, Octopus’s salary sacrifice helps drivers save 30-40% every month on a brand new electric car. Octopus offers an easy all-in-one service, providing the brand new car, charger and discounted energy tariff.
In the last two years, Octopus has helped more than 3,000 companies launch an electric car employee benefit scheme, with clients including McLaren, Nando’s and Zoopla.
Octopus Electric Vehicles has increased its headcount tenfold since May 2021, creating more than 225 new green jobs across offices in London, Weybridge, Brighton and Manchester. Octopus recently took its expertise to America with the launch of Octopus Electric Vehicles in the US.
Fiona Howarth, CEO of Octopus Electric Vehicles, commented: “Drivers are increasingly seeing the benefits of switching out old gas guzzlers for electric cars. They are great to drive, better for the planet and can save over £1,000 a year in fuel. With demand soaring, we need manufacturers to continue to increase volumes. ”
“With this demand, the UK is ever more attractive for EV charging investment and a destination for new electric car brands. With an amazing heritage in automotive here in the UK, we’re proud to be able to create new jobs in today’s upgraded, greener car market. And as Pollen Street’s commitment shows, leadership from the finance sector can make a real difference.”
Matthew Potter, Partner at Pollen Street Capital, said: “We are excited to partner with Octopus Electric Vehicles to support the expansion of their salary sacrifice scheme. Octopus are an innovative business which has gone from strength to strength and we are delighted to support their next phase of growth.”
Pollen Street is an alternative asset manager with an established platform across private equity and private credit. Pollen Street’s credit strategy is dedicated to senior secured, asset backed investments with a strong track record in providing financing that delivers positive impact, particularly in energy transition. In the last 18 months the firm has completed four transactions that fund the expansion of electric vehicle fleets encouraging the switch to greener transport.
Octopus Electric Vehicles was launched with a simple mission; to make it easy for drivers to switch to clean, electric transport. The business sits within the wider Octopus Energy Group, which is expanding rapidly having received over $1bn in funding over the last two years, giving it a valuation of $5bn.
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Octopus Electric Vehicles:
Octopus Electric Vehicles, part of the Octopus Energy Group, was launched in 2018 to make it easy for drivers to make that switch to clean, electric transport. With over 85 electric cars now available from 28 different brands, Octopus Electric Vehicles’ team provides everything drivers need to take the road in a new EV.
Offering an all-in-one service, Octopus lease the cars, install charge points, provide specialist EV energy tariffs, and offer access to over 430,000 public charge points across Europe via Octopus Electroverse. All with a 5* rating on Trustpilot.
Octopus Electric Vehicles also specialises in salary sacrifice schemes - an employee benefit that makes driving a brand new electric car cheaper than the petrol or diesel equivalent through tax savings. Placing customer experience first, Octopus Electric Vehicles has designed the scheme to be simple for an employer to set up and run, and support them at every step. Drivers typically save between 30-40% every month on the cost of their EV; and at zero-cost for an employer to set up, it’s great for their team, their hiring and retention, and for their sustainability goals.
More information can be found at www.octopusev.com
About Pollen Street:
Pollen Street is a fast growing, purpose led and high performing private capital asset manager. Established in 2013, the firm has built deep capability across the real estate, financial and business services sector aligned with mega-trends shaping the future of the industry. Pollen Street manages over £4.1bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, sovereign wealth funds, endowments and foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 80 professionals with offices in London and the US.
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