Volta Trucks raises €230 million for the production of its all electric trucks
Swedish electric vehicle startup Volta Trucks that believes it can build better urban delivery vehicles and other trucks that are safer and take up a smaller carbon footprint than their gas-guzzling, more clumsy, existing counterparts — has closed a big round of funding to help it through that last mile of work before its Volta Zero trucks go into commercial production later this year.
The company has raised €230 million, a Series C round of funding that appears to value the company at just over €433 million. Volta will be using the money to fund engineering and business operations ahead of its first trucks rolling off the assembly line, on the back of what looks like a healthy list of customers: Volta said that its pre-order book for its all-electric Volta Zero — said to be the first fully electric, purpose-built commercial freight vehicle designed for urban freight distribution — is currently totaling over €1.2 billion, covering more than 5,000 vehicles. Volta’s wider business strategy will be based both on selling trucks as well as offering its vehicles on a trucking-as-a-service model.
New York-based Luxor Capital, which led the company’s €37 million Series B in September 2021, is also leading this round. Real estate investment firm Byggmästare Anders J Ahlström (like Volta, based in Stockholm), supply chain services giant Agility, and B-FLEXION (formerly Waypoint Capital) also participated. While Volta has not disclosed its valuation, Pitchbook data notes that it is now just over €433 million — a figure that we have now confirmed also with sources close to the company.
“We are investigating autonomy / self-driving for the future but as a vehicle that’s specifically designed as a city centre distribution and delivery vehicle, the goods within the vehicle will need delivering from the vehicle to their end destination. As a result, the purpose of the vehicle will always need a person involved, making self-driving less relevant for this type of vehicle,” said a spokesperson.
Volta said it will also use some of the funding to continue developing smaller 7.5- and 12-tonne full-electric Volta Zero derivatives (the first model will be 16 tonnes), and eventually a larger 18-tonne model. The company is building a production facility in Austria, with plans to produce 5,000 vehicles in 2023; 14,000 trucks in 2024; and up to 27,000 trucks in 2025.
“The successful and oversubscribed conclusion of our Series C funding round gives us a positive external validation of our journey,” said Essa Al-Saleh, CEO of Volta Trucks, in a statement. “As an innovator and disruptor in commercial vehicles, we are working at industry-leading pace and have significant ambitions. Today’s closing of the Series C funding round, bringing €230 million into the company, gives us the financial runway to be able to deliver on all our goals as we transition from a start-up to a manufacturer of full-electric trucks. The confirmation of our orderbook of over 5,000 vehicles with an orderbook value exceeding €1.2 billion, gives us and our investors, confidence that our pioneering product and service offering is both wanted and needed by our customers.”