EV fleet financing startup raises $2.5M
Zeti, a U.K.-based fintech startup with an EV angle, raised $2.5 million in seed financing, the company tells Axios.
Why it matters: Power purchase agreements underpinned growth in solar and wind projects for decades, and Zeti wants to do the same for fleet electrification with its financing software.
Details: Powerhouse Ventures led the round — which includes a convertible debt component — but does not gain a board seat as part of the deal.
- The deal closed at the end of July after four months of fielding proactive proposals from interested investors, CEO Dan Saunders says.
How it works: Zeti has deployed roughly $17 million to date, Saunders says, with another $15 million expected to come online within the next quarter.
- Its software matches funds from financial institutions to zero-emissions vehicle manufacturers that then supply fleet operators with the vehicles.
- Financial institutions pay per mile for vehicle investments or per kilowatt-hour for charging infrastructure purchases, an asset Zeti plans to add in the future.
Of note: A small component of the seed deal hasn't yet closed, Saunders says, though the company plans to raise its Series A at the end of the year.