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EV Realty raises $28M to charge for the last mile

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Illustration: Shoshana Gordon/Axios

EV Realty, based in San Francisco, raised $28 million in an all-debt deal to build charging depots for vehicle fleets.

Why it matters: EV Realty is aiming to become the go-to hub for companies seeking large, centralized charging depots to quickly electrify delivery vans and work trucks.

Details: NGP ETP and Segue Sustainable Infrastructure led the round. It closed Oct. 25.

  • Fifth Wall, Broadscale Group and Alpaca participated.
  • NGP gained a seat on the three-member board. EV Realty retained the other two seats.

What's happening: The idea is — you guessed it — "charging-as-a-service," CEO Patrick Sullivan tells Axios.

  • In exchange for a subscription fee or similar payment structure, a delivery company or contractor will have fully charged work trucks in the morning.
  • "This is a systems problem: You're not going to pilot your way to 30 million electric vehicles by doing one charger for two trucks at every customer's location in America," Sullivan says. "You're really going to have to think about how you adapt to the electrical grid to be the fuel source for vehicles."

Context: California, where EV Realty is based, has taken steps to require large fleets to phase in electric vehicles as soon as 2024. The rule would affect about 70% of the state's trucks.

  • "The amount of charging infrastructure that's going to be required for just that commercial segment is a 40-fold increase in commercial charging capacity in the next eight years," Greg Lyons, principal at NGP, tells Axios.

Of note: EV Realty isn't pursuing a vehicle-to-grid revenue stream, at least for now.

What's next: The company is installing public charging hubs for East Bay Community Energy early next year.

  • It aims to open its first depot for commercial customers by the end of 2024.
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