Everlectric founders: Ndia Magadagela, Paul Plummer, and Wesley van der Walt. Image Credits: Everlectric
South African-based startup, Everlectric, has secured a venture debt funding from the Vumela Fund. The Vumela Fund is a collaboration between FNB Business Banking and Edge Growth, provides growth capital to African-owned small and medium-sized enterprises (SMEs) in South Africa.
The venture debt structure is meant to provide non-dilutive capital to venture-backed scale-ups, allowing them to fund growth between equity funding rounds. This type of financing is becoming increasingly popular among startups seeking to minimize dilution of ownership. This investment comes amidst rising interest in electric and hybrid vehicles, a reflection of global trends.
Ndia Magadagela, Paul Plummer, and Wesley van der Walt founded the company in 2020 with faith that its early entry into the South African EV market positions it for significant growth. It aims to smoothen the transition to electric vehicles fot businesses by focusing on a comprehensive service offering.
Everlectric majors on commercial battery electric vehicle (BEV) panel vans, catering to logistics providers and other businesses. The company also provides a leasing package, which includes access to charging infrastructure. The company hopes to, by these offerings, calm common concerns about EV adoption, such as range anxiety and charging logistics. The company has also been able to detach operational costs from fluctuating fuel prices offers businesses greater financial predictability. A leading South African multinational retailer is already using Everlectric’s EVs for customer deliveries, demonstrating the viability of the model.
Global EV stock surpassed 16 million vehicles in 2022, a 60% increase year-on-year, according to the International Energy Agency (IEA). Though, adoption rates are still relatively low in South Africa compared to other markets, there have been record sales of new energy vehicles (NEVs), EVs, hybrids, and plug-in hybrids, in 2023, according to the National Association of Automobile Manufacturers of South Africa (Naamsa). Third-quarter NEV sales in 2024 were up 88% compared to the same period the previous year.
Ndia Magadagela, co-founder of Everlectric, said this of the Vumela partnership: “This venture debt is the right catalyst, at the right time, with the right debt provider, enabling Everlectric’s growth.”
Philippa Lloys Ellis, Investment Principal at Edgegrowth, expressed confidence in Everlectric’s potential: “Everlectric has developed an innovative solution to assist South African businesses with their transition to EV fleets, addressing most of the concerns that exist around the adoption of EVs. We have been impressed by Everlectric’s innovative, organised and ambitious management team.” She said.
Mike Sage, FNB’s Investment Capital Head and a Vumela Trustee, emphasized the fund’s commitment to sustainable outcomes: “Everlectric is pioneering the transition of business fleets onto EV platforms which we believe creates longer-term sustainable outcomes.”
