Electric vehicle charging provider, BMM Networks is raising capital to expand its network of British public points through Growthdeck, the private equity investment firm.
BMM Networks is now seeking GBP1.38m (US$1.56m) of capital through Growthdeck to deliver a further 2,300 charging points during the next three years.
BMM Networks primarily works with local authorities to deliver on-street charging points.
Most on-street charging points are connected to low-energy lamp-post electricity supplies, says BMM, which notes its charging points have dedicated high-energy electricity supplies, reducing the time taken for a full charge to four hours.
Local authorities have access to GBP500m in central government funding for provision of on-street charging points, but Growthdeck says only GBP800,000 of this has so far been claimed since the scheme was launched in 2017.
The primary reason for this is a lack of expertise in claiming through what can be a challenging process. BMM's business model includes working with local authorities to assist them with claiming the funding.
Access to government finance can mean BMM Networks is only required to contribute 25% of the cost of each charger and associated installation costs and yet owns the assets and all revenues generated.
BMM Network's sister company and existing installation partner, BMM Energy, has already delivered 6,500 charging points in partnership with local authorities including Waltham Forest, Canterbury, Wrexham and South Norfolk, while a further contract with Essex County Council was won in April, 2020.
BMM Networks has also entered into a partnership with Clenergy to provide a smartphone-based payment service for users of the chargers.
Demand for on-street charging points is expected to grow sharply during the coming years. There are currently around 250,000 EVs on UK roads, with less than 20% of drivers in urban areas having access to on-street charging points. The number of EVs is expected to quadruple to 1m by 2022.
"Demand for electric vehicle charging is going to grow enormously in just the next few years and BMM Networks is very well placed to be a major beneficiary of that," said Growthdeck head of business development, Gary Robins.
"The government has committed hundreds of millions of pounds to funding on-street charging, but almost all of it remains untouched."
Growthdeck's investment in BMM Networks qualifies for tax relief through the Enterprise Investment Scheme (EIS). EIS is an investment scheme which allows private investors to make tax savings by investing in growth businesses.