The Electric Car Scheme Announces Further Investment As Growth Hits 160%
Following 160% year-on-year growth, The Electric Car Scheme receives new investment to accelerate growth to meet increased demand for both new and used EVs
The investment round has been led by 13books Capital, with co-investment from Triple Point Ventures, Seedcamp, Adjuvo, Ascension and Bayern Kapital
The company’s fast-growing second-hand EV offering is driving a significant increase in uptake of the salary sacrifice scheme
The Electric Car Scheme has announced the closing of a new funding round on the back of strong year-on-year growth and significant increases in demand for both new and used EVs.
The latest funding round is led by 13books Capital and includes participation from Triple Point Ventures, Seedcamp, Adjuvo, Ascension and Bayern Kapital.
Over the past year, the company has grown significantly, and it will use the funding to further increase awareness of the benefits of its innovative EV salary sacrifice scheme, drive product innovation and develop its wider Net Zero transition offerings. The Electric Car Scheme has grown by 160% in the last year as more people make the transition to electric cars.
The investment comes as the UK government reinstates the 2030 ZEV deadline, increasing the urgency to drive the uptake of EVs in the UK, of which salary sacrifice already makes up a significant proportion of market demand. The Electric Car Scheme offers UK employees easy and more affordable access to an electric car through salary sacrifice. This drastically speeds up the transition to Net Zero by improving affordability and making it simple to get into an electric car.
Over the last year, the company’s unique used EV offering has proven tremendously popular and grown by 300%. The lower price point of used EVs through salary sacrifice makes the switch to EVs much more affordable, the key to EV adoption – with 68% of Brits saying the cost is the main barrier to driving electric. Used EVs now make up around half of The Electric Car Scheme’s sales.
The Electric Car Scheme already works with more than 1,000 companies to deliver savings to their employees of between 30-60% on an electric car of their choice. It is estimated that the company has reduced as many harmful emissions as one would planting more than 620,000 trees
Co-Founder and CEO of The Electric Car Scheme, Thom Groot said:
“This new round of investment is a huge vote of confidence not only in The Electric Car Scheme but the company’s impact in supporting the wider transition to Net Zero emissions. We are incredibly excited to work together with our brilliant team, and forward-thinking investors to deliver on our mission to make Net Zero simpler and cheaper to become the obvious choice.
“The past year has been a period of fast growth for the company. The increase in used EVs in the market has proved to be a key enabler to increased employee uptake, and in turn, business interest in rolling out the scheme.
“However, we are still at the start of this major transition (as fewer than 3% of cars in the UK are EVs), and there is much work still to be done to make the switch to Net Zero products such as EVs more affordable and the no-brainer decision it should be for people.”
Michael McFadgen, Co-founder and Partner at 13books commented:
"We are thrilled to have led the Series A for The Electric Car Scheme. Transitioning to Net Zero stands as one of the most important global challenges but finding effective ways to contribute can be daunting.
“The team at The Electric Car Scheme has developed an innovative product that simplifies this journey, making leasing an electric vehicle the clear financial choice. This solution not only advantages companies and consumers but also champions a healthier planet for all."
The Electric Car Scheme is a salary sacrifice employee benefit that allows employees to access electric cars at a 30-60% lower cost. The Electric Car Scheme is the first available offering from parent company, Net Zero Choices. The company was set up in June 2020 after Co-Founders, Thom Groot and Tom Eilon, found the government's tax incentive for employees to switch to electric and go green impossible to access.
