Amsterdam-based fast-charging company, Fastned, has successfully raised €21.9 million through the issuance of new bonds, capitalising on the recent European Union regulation mandating the installation of fast-charging infrastructure along main roads in member states.
The Dutch company’s latest funding round also includes an extension of €2.4 million from previous investments, bringing the total amount raised to over €24 million. The bonds, which have a 5.5% coupon and a 5-year maturity, attracted investors eager to capitalise on the growing demand for electric vehicles (EVs) and the increasing availability of charging infrastructure.
More charging stations across Europe
Fastned plans to utilise the fresh capital to expand its network of ultra-fast charging stations across Europe. Currently operating over 150 stations, the company aims to add another 60 by the end of 2023 and 400 more stations by 2025. Positioned strategically in high-traffic areas such as motorways and city centers, Fastned’s stations offer charging speeds of up to 350 kW, enabling EVs to achieve a range of up to 200 miles in just 15 minutes. The company’s commitment to convenient and efficient charging options has garnered significant attention and interest from drivers.
The investment in Fastned aligns with the surging demand for electric vehicles in Europe. With sales projected to reach 10 million by 2025, government incentives, including tax breaks and subsidies, are fueling this growth, alongside the need for expanded charging infrastructure. Fastned’s ability to secure substantial funding, despite the challenges posed by the capital market environment, highlights the company’s resilience and growing investor base.
‘We are proud of the trust investors have put in Fastned again. Despite a challenging capital market environment, with continued inflation and increasing interest rates, Fastned once again proved its resilience in the retail bond market with a solid and growing investor base. Together, we not only build fast charging stations on high traffic locations, but we also grow a community around electric driving. We believe that the electric revolution will really take off when charging becomes hassle free and that is why we roll out our network across Europe: to offer freedom to electric drivers. Every day we get closer to our goal of one thousand stations by 2030, where we sell energy from renewable sources like sun and wind, actively helping to curb the climate crisis.’ Victor van Dijk, CFO of Fastned.
Founded in 2012 by Michiel Langezaal and Bart Lubbers, Fastned aims to accelerate the transition to electric transportation by establishing a comprehensive fast-charging infrastructure across Europe. The company owns and maintains an extensive network of electric vehicle charging stations in the Netherlands, Germany, Switzerland, the United Kingdom, and Belgium, with a significant presence at rest stops along Dutch highways. Fastned’s stock is traded on Euronext Amsterdam, further solidifying its position as a key player in the fast-charging market.
What about competition?
Fastned, as a prominent player in the European fast-charging market, faces competition from several other companies operating in the same space. Here are some notable names:
Ionity: Ionity is a joint venture between several major automakers, including BMW, Daimler, Ford, and Volkswagen Group. The company focuses on developing and operating a high-power charging network along major European highways. Ionity aims to provide fast and convenient charging options for electric vehicle owners.
Allego: Allego is a leading provider of charging infrastructure solutions in Europe. The company offers a range of charging services, including fast and ultra-fast charging, for public and private applications. Allego operates a network of charging stations across multiple countries, with a focus on high-traffic locations such as highways, cities, and workplaces.
EVBox: EVBox is a global provider of electric vehicle charging solutions, including hardware, software, and services. The company offers a comprehensive portfolio of charging stations for residential, commercial, and public use. EVBox operates in various European countries and aims to contribute to the development of sustainable and accessible charging infrastructure.
Enel X: Enel X is a subsidiary of Enel, an Italian multinational energy company. Enel X provides a wide range of charging solutions and services for electric vehicles. The company operates a network of charging stations across Europe, with an emphasis on interoperability and seamless customer experience.
E.ON Drive: E.ON Drive is the electric mobility division of E.ON, a leading European energy company. E.ON Drive offers various charging solutions, including fast and ultra-fast charging, for both public and private locations. The company aims to support the adoption of electric vehicles by providing reliable and accessible charging infrastructure.
The fast-evolving nature of the electric vehicle industry continues to attract new players and foster competition, ultimately driving the expansion and improvement of charging infrastructure across the continent.
To outpace its competition, Fastned needs to employ several strategies including seamless user experience, partnerships and collaboration to maintain a leading position in the fast-charging market. By executing similar strategies effectively, Fastned can maintain a competitive edge and position itself as a preferred choice for EV owners in Europe, solidifying its market leadership in the fast-charging sector. Let us know what you think in the comments section below.
