Zparq, a DeepTech company developing next-generation electric drivetrains out of Stockholm, has been awarded €5.5 million in EU funding to complete the development and scaling of its Z10 platform and to drive the marine industry’s transition towards sustainable, zero-emission propulsion.
This funding is a combination of an EIC grant and an equity investment through Zparq’s existing investors InnoEnergy, Santander Climate Fund and Almi Invest Greentech.
“This milestone underscores both the technological strength of our platform and the momentum for change across the marine industry,” says Jonas Genchel, CEO and Co-founder of Zparq. “With increasing regulatory pressure and clear customer demand for sustainable propulsion, the time for electrification is now. Our Z10 platform proves that electric propulsion can be clean, safe, and fully competitive, not only in performance, but also in cost and reliability.”
The funding awarded to Zparq for its Z10 marine drivetrain platform fits within a broader 2025 trend of European startups advancing electrified propulsion and clean mobility technologies.
This includes Finland’s Donut Lab, which raised €25 million to develop a modular EV platform for land, sea and air vehicles, and the Netherlands’ Deftpower, which secured €12.5 million to expand its AI-driven EV charging network across Europe.
While Zparq is the only Swedish company in this group, the activity across the Nordic region – particularly Donut Lab’s Finnish raise – illustrates the region’s strong momentum in sustainable propulsion and deep-tech innovation.
Zparq’s combination of grant and equity financing under the EIC Accelerator also reflects how public instruments continue to play a pivotal role in scaling European clean-transport technologies.
“Zparq is a prime example of how European DeepTech innovation can transform entire industries,” says Lowina Lundström, CEO of InnoEnergy Scandinavia. “Their drivetrain platform addresses one of the most challenging sectors to decarbonise – marine propulsion – by combining technical excellence with industrial scalability. At InnoEnergy, we are proud to support Zparq in bringing this breakthrough to market, thereby accelerating Europe’s leadership in clean and competitive marine technology.”
Founded in 2020, Zparq looks to provide the most compact and scalable direct-drive system for propeller-driven watercrafts on the market. Zparq offers electric motors and complete powertrains for the full range of leisure boats as well as commercial vessels, enabling an environmentally friendly, efficient, and quiet propulsion with minimal maintenance.
Zparq is one of only 40 European start-ups to be selected for the EIC Accelerator programme, chosen from over 1,000 applicants. In this round, nearly €230 million was allocated to only 40 selected companies, with the majority provided as blended finance.
“We are incredibly happy and proud to have been selected for the EIC Accelerator in such tough competition. It is a strong validation that our technology comes at the right time and has the potential to make a real difference,” adds Genchel. “This recognition and funding will allow us to scale faster, build new partnerships, and drive the systemic change needed to decarbonize waterways.”
According to the company, the marine sector has long relied on internal combustion engines, but their environmental impact, higher maintenance costs, and regulatory hurdles are accelerating the shift toward electrification. Zparq aims to address these challenges head-on with its ultra-compact, scalable, and fully integrated electric drivetrains.
Its Z10 platform is designed not only for leisure boats but also for demanding commercial and rescue applications, with integrated safety systems, advanced battery management, and theft-prevention technology redefining the standards for marine mobility.
With this financing, Zparq will be able to:
- Complete the development of the entire Z10 platform, the company’s core technology for electric drivetrains.
- Scale up the technology for wider market adoption and industrial production.
- Continue attracting international partners and customers in the transport sector
Read the orginal article: https://www.eu-startups.com/2025/10/from-leisure-boats-to-rescue-fleets-zparqs-electric-drivetrains-steer-marine-transport-toward-zero-emissions/
