Riga-based mechanical engineering company Electrify has secured a substantial €1.5 million in funding from ZGI Capital, a venture capital fund. This investment marks a pivotal moment for Electrify, which was founded in 2019 and stands as Latvia’s sole car manufacturer. The company specializes in producing electric minibuses designed for city and intercity transport, student transportation, and customized needs. With a track record of innovation and a growing export market, including recent contracts in Norway and Sweden, Electrify plans to use the new funds to boost production capacity and capitalize on the anticipated surge in demand for electric minibuses in Norway.
Electric minibus manufacturer SIA Electrify was founded in 2019 and is the only car manufacturer in Latvia. The company produces minibuses for transporting passengers in urban and intercity public transport, minibuses for transporting students, as well as other minibuses adapted to the individual needs of customers.
Due to their high maneuverability, electric passenger minibuses are in great demand on routes where it is not possible to travel with large-sized buses, as well as in smaller cities with narrow streets and less passenger flow. Along with the European green course, many European cities are currently making significant investments in improving public transport and mobility, with an emphasis on emission-free transport and improving service convenience, which creates a high demand for environmentally friendly buses. Services such as on-demand public transportation, as well as combining passenger transportation with goods delivery, are gaining popularity, and the minibuses created by Electrify are well-suited for such a service.
Electrify SIA co-founder and CEO Agris Amoliņš: “Electrify passenger electric minibuses are the most innovative and technologically advanced currently on the European market. About half of the produced products are exported to countries such as Estonia, Lithuania, Germany and Norway. In 2023, Electrify signed an agreement with one of the largest passenger carriers in the Norwegian and Swedish markets, and it is in these markets that we see the greatest potential. In the Norwegian market, our products are in great demand, and starting from 2025, it is forbidden to buy minibuses with internal combustion engines in this country. In 2024, turnover is planned to increase by more than 500% and ZGI Capital’s investment will provide the necessary working capital to increase production capacity.”
ZGI Capital has been investing in small and medium-sized companies in Latvia, Estonia and Lithuania since 2005 and is one of the most experienced players in the Latvian private capital market. The investment in Electrify was made from ZGI Capital’s fourth-generation growth capital fund with a total amount of EUR 32.5 million, of which EUR 19.5 million is ALTUM’s financing from the European Regional Development Fund (ERDF) and public funding. Currently, ZGI Capital has also started work on the creation of a next-generation growth capital fund to continue investing in small and medium-sized companies in the Baltic region.
“We are happy to start cooperating with Electrify. The company’s experienced team, historical results, and future business potential give us confidence in their ability to implement their development plans, as well as promote the further growth of the Latvian automotive industry,” says Edgars Cimermanis, chairman of the board of ZGI Capital.
Click to read more funding news.
Read the orginal article: https://arcticstartup.com/electrify-raises-e1-5-million/
