Pretoria-based electric vehicle (EV) pioneer Everlectric has secured a major funding boost from the Vumela Fund, unlocking further capital for expansion and driving the adoption of electric commercial fleets in South Africa. This milestone positions Everlectric at the forefront of the country’s transition to sustainable transportation solutions.
The global EV revolution is accelerating, with the International Energy Agency (IEA) reporting that global EV stock surpassed 16 million vehicles in 2022, a staggering 60% year-on-year increase.
The momentum continued with a 35% rise in 2023 and a further 25% in 2024.
South Africa is catching up, with the National Association of Automobile Manufacturers of South Africa (Naamsa) confirming that 2023 marked a record year for new energy vehicle (NEV) sales. Growth has surged into 2024, with NEV sales climbing 88% in Q3 compared to the same period in 2023.
Everlectric is tapping into this growing demand by offering full-maintenance leasing of commercial Battery Electric Vehicle (BEV) panel vans tailored for the logistics sector. By eliminating barriers to entry, the company enables South African businesses to embrace cleaner, more cost-effective fleet solutions.
Recognising Everlectric’s scalable and innovative approach, the Vumela Fund has stepped in with venture debt funding to fuel its rapid growth. This investment promotes Everlectric’s strong leadership, market potential, and game-changing business model.
“We are delighted to be partnering with Vumela on this venture debt transaction. This is a testament to Vumela’s commitment to providing innovative growth finance mechanisms to enable rapid scaling of South African start-ups. The venture debt is the right catalyst, at the right time, with the right debt provider, enabling Everlectric’s growth,” says co-founder Ndia Magadagela.
The Vumela Fund, a collaboration between FNB Business Banking and business development specialist Edge Growth, was established in 2010 to support high-growth black-owned SMEs in South Africa.
Through its venture debt solutions, Vumela provides non-dilutive capital to scale-ups looking to bridge the gap between funding rounds.
Philippa Lloys Ellis, Investment Principal at Edge Growth, highlights the significance of Everlectric’s role in South Africa’s EV market:
“Everlectric has developed an innovative solution to assist South African businesses with their transition to EV fleets, addressing most of the concerns that exist around EV adoption. This presents a potentially very large and untapped market in South Africa.
“We have been impressed by Everlectric’s innovative, organised and ambitious management team. We look forward to partnering with the team and supporting them as they grow. We expect that the Venture Debt funding will be catalytic in helping the business unlock further capital for growth.”
Founded by Magadagela alongside Paul Plummer and Wesley van der Walt, Everlectric provides a seamless and risk-free route to commercial EV adoption. Their comprehensive service includes leasing internationally manufactured BEV panel vans, offering access to a robust charging infrastructure, and integrating an advanced smart device platform for fleet management.
Mike Sage, FNB’s Investment Capital Head and a Vumela Trustee, reinforces the strategic importance of this investment: “We are incredibly excited to provide funding to assist Everlectric’s growth. Everlectric is pioneering the transition of business fleets onto EV platforms, which we believe creates longer-term sustainable outcomes.”
With the rising volatility of fuel prices, Everlectric’s model offers businesses a way to stabilize operational costs by shifting to electricity-powered fleets. Their cutting-edge charging solutions mitigate fleet range anxiety, making EV adoption more practical and efficient.
Already, a major South African multinational retail company has integrated Everlectric’s EVs into its delivery operations, setting a precedent for widespread industry adoption.
By removing traditional barriers to EV adoption, Everlectric is proving that early action leads to opportunity. This funding milestone not only accelerates the company’s growth but also positions South Africa as a key player in the global shift toward sustainable transportation.
Woolworths, in partnership with DSV and Everlectric, is the first South African retailer to embark on an extensive rollout of electric panel vans (EVs) to deliver their customers’ online purchases. This move is part of the company’s commitment to reducing its carbon footprint and promoting sustainability in the retail industry.
“Last year we announced our commitment to electric delivery vehicles, and we are delighted to now have nearly half our fleet powered by the sun. The new electric vehicles have been introduced on selected routes in Cape Town and Gauteng with further rollouts and extensions into KwaZulu Natal planned to follow as soon as possible. We have bold sustainability goals and ambitions, which included the goal to have ZERO nett carbon emissions by 2040 so this investment is a big step towards these goals. On an annual basis these 41 vehicles will have the potential to save over 400 000 kgs of tailpipe carbon emissions. With the exponential growth of our online business, switching to electric delivery vehicles is a smart and sustainable solution that benefits everyone,” confirms Liz Hillock, Woolworths Head of Online and Mobile.
“To power the vans, electricity will be sourced as far as possible from renewable sources by utilising DSV’s extensive solar infrastructure at their Gauteng and Cape Town facilities. Should there be any exception to renewables recharging, DSV and Everlectric will work with an audit firm to procure Renewable Energy Certificates (RECs) to offset any indirect grid energy emissions.”
“We are thrilled to be a part of this collaboration! Recognising our role in the transport and logistics industry, we have raised our sustainability ambitions and committed to reaching net zero emissions across our operations by 2050. Achieving our sustainability goals cannot be realised alone. That’s why we work with customers and industry partners, like Woolworths and Everlectric to develop solutions that benefit both our planet and our business,” adds Greg Saffy, Senior Director Operations, DSV Road Logistics DSV.
