- Everlectric secures venture debt funding from Vumela Fund to expand its EV fleet leasing services for businesses in South Africa.
- Record NEV sales in South Africa increased by 88% in 2024, reflecting the growing demand for electric vehicles in logistics and transport.
- Comprehensive EV leasing service includes BEV panel vans, charging infrastructure, and fleet management, simplifying the transition to electric vehicles for businesses.
South Africa’s electric vehicle (EV) market is growing rapidly as the country shifts toward sustainable transportation. The International Energy Agency (IEA) reported that global EV stock exceeded 16 million in 2022, a 60% jump from the previous year. The surge continued with a 35% rise in 2023 and another 25% in 2024. The National Association of Automobile Manufacturers of South Africa (Naamsa) highlighted 2023 as a record year for New Energy Vehicle (NEV) sales, with an 88% increase in the third quarter of 2024 compared to the same period in 2023.
Electric, a Pretoria-based startup, capitalises on this demand by leasing commercial battery electric vehicle (BEV) panel vans to businesses, focusing on logistics service providers. The company offers a sustainable, cost-effective solution leveraging advanced technology to meet market needs.
To accelerate its growth, Everlectric secured venture debt funding from the Vumela Fund, a partnership between FNB Business Banking and Edge Growth, established in 2010. Vumela provides growth capital to black-owned small and medium enterprises (SMEs). This venture debt model enables scale-ups to secure funding without sacrificing equity, helping them grow between investment rounds.
“We partnered with Vumela at the perfect time to drive our expansion,” said Ndia Magadagela, co-founder of Electric. “This funding will help us meet our goals and strengthen our position in the market.”
Edge Growth’s Investment Principal, Philippa Lloys Ellis, commended Everlectric’s innovative solution for simplifying the transition to EV fleets in South Africa. “Electric addresses the key barriers to EV adoption, and we believe they will unlock significant growth in this market,” she said.
FNB’s Investment Capital Head and Vumela Trustee, Mike Sage, emphasised the financial benefits of switching to electricity over fuel. “Transitioning to electricity stabilises operating costs and offers a long-term, sustainable solution for businesses,” Sage noted.
Magadagela co-founded Everlectric with Paul Plummer and Wesley van der Walt. The company provides a comprehensive service, including leasing internationally manufactured BEV panel vans, access to a charging infrastructure network, and an innovative platform for fleet management. Their service reduces range anxiety and charging concerns, helping businesses easily transition to EVs.
A prominent South African retail company has already integrated Everlectric’s vehicles into its delivery fleet, reflecting its commitment to reducing carbon emissions.
With the venture debt funding, Everlectric aims to expand its operations and prove that EVs are a commercially viable option for South African businesses. Their solution breaks misconceptions about EV adoption and leads the country’s shift to cleaner, more sustainable transportation.
As the EV market grows, Everlectric stands ready to meet the rising demand and support businesses adopting electric fleets. Backed by a strong management team, innovative solutions, and robust financial support, Everlectric is poised to reshape South Africa’s transportation landscape.