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SA startup to drive
EV adoption
Everlectric, which provides full maintenance leases of commercial electric panel vans to South African businesses, has secured venture debt funding.
Electric vehicle (EV) growth is gaining momentum in South Africa, as the country shifts toward more sustainable transportation solutions. EVs form part of the broader category of new energy vehicles (NEVs), which also include hybrid and plug-in hybrid vehicles. The Automotive Business Council (naamsa) reports that 2023 was a record year for NEV sales in South Africa, with significant growth continuing into 2024. In the third quarter of 2024, NEV sales increased by 88% compared to the same period in 2023.
According to the International Energy Agency (IEA), global electric vehicle (EV) stock surpassed 16-million vehicles in 2022, marking a 60% increase from the previous year, with another 35% increase in 2023 and 25% in 2024.
With EVs offering a cleaner and more sustainable alternative to internal combustion engine vehicles, an innovative startup is embracing the increasing popularity, technological advancements, cost-effectiveness and environmental benefits of EVs. Everlectric, based in Pretoria, provides full maintenance leases of commercial Battery Electric Vehicle (BEV) panel vans to South African businesses, particularly tailored to service providers in the logistics space.
Recognising the significant untapped market opportunity afforded by this trailblazing enterprise, supported by a pioneering and scalable solution and an outstanding management team, Everlectric has secured venture debt funding from the Vumela Fund.
“The venture debt is the right catalyst, at the right time, with the right debt provider, enabling Everlectric’s growth,” says co-founder Ndia Magadagela.
The Vumela Fund was established in 2010 as a collaboration between by FNB Business Banking and business development specialist Edge Growth to provide growth capital to black-owned SMEs. The objective of the fund is to invest in high-growth small and medium enterprises and support their development and growth.
Developing alternative funding solutions is crucial for addressing the problem of access to funding for SME businesses, the venture debt offering/solution is designed to meet the funding needs of venture capital-backed scale-ups requiring non-dilutive capital to fund growth between funding rounds.
Philippa Lloys Ellis, investment principal at Edge Growth, says that Everlectric has developed an innovative solution to assist South African businesses with their transition to EV fleets. This addresses most of the concerns that exist around the adoption of EVs as a solution, which presents a potentially very large and untapped market in South Africa.
“We have been impressed by Everlectric’s innovative, organised and ambitious management team,” she says. “We look forward to partnering with the team and supporting them as they grow and expect that the Venture Debt funding will be catalytic in helping the business unlock further capital for growth.”
Founded by Magadagela, along with Paul Plummer and Wesley van der Walt, Everlectric provides a risk-free and cost-effective route to the adoption of commercial EVs in South Africa. Their service offering includes the leasing of leading internationally manufactured BEV panel vans, along with the access to a network of charging infrastructure and a smart device platform.
Mike Sage, FNB investment capital head and a Vumela trustee, says: “Everlectric is pioneering the transition of business fleets onto EV platforms which we believe creates longer term sustainable outcomes.”
Investing in electricity instead of fuel results in a decoupling of operational costs from unpredictable fluctuations in fuel prices. Everlectric’s charging solutions solve fleet range anxiety and charging needs.
