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. The growth of EVs is also 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 National Association of Automobile Manufacturers of South Africa (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.
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.
“We are delighted to be partnering with Vumela on this venture debt transaction. This is a testament to Vumela’s commitment to providing innovative growth finance mechanisms, to enable rapid scaling of South African start-ups. 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 this pioneering fund in South Africa 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.
Investment Principal at Edgegrowth, Philippa Lloys Ellis, says that 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 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. 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,” she says.
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 an enabling smart device platform.
“We are incredibly excited to provide funding to assist Everlectric’s growth. Everlectric is pioneering the transition of business fleets onto EV platforms which we believe creates longer term sustainable outcomes,” says Mike Sage, FNB’s Investment Capital Head and a Vumela Trustee.
Investing in electricity instead of fuel results in a decoupling of operational costs from unpredictable fluctuations in fuel prices. Everlectric’s charging solutions solve for fleet range anxiety and charging needs. As part of their commitment to reducing its carbon footprint, a leading South African multinational retail company is already using EVs provided by Everlectric for customer deliveries.
With an “early action leads to opportunity” attitude, Everlectric has been able to dispel the misconception that EVs are not commercially viable in South Africa. Their holistic service offering minimises the barriers to EV adoption and paves the way for a painless EV transition.
