When ChargePoint came into existence in 2007, it wasn’t building EV infrastructure for the few hundred electric vehicles that were on roads at the time.
Rather, it was focused on the long term goal of serving a million EVs that would be sold in the following decade. Cut to 2021, ChargePoint becomes the largest independently-owned EV manufacturer and a reason why the millions of sustainable rideshare options are thriving!
Now, the company is filing for an IPO through SPAC with a valuation of $2.4 billion. With already $660 million coming from multiple rounds of funding, ChargePoint is seeking to replenish its coffers with another $493 million from the stock market.
Another good news came when California, the biggest EV market in the US, announced that they would ban the sale of internal combustion engines by 2035.
Who are the People Behind It?
Founded by serial entrepreneur Richard Lowenthal, ChargePoint was known as Coulomb Technologies before its rechristening. Right from the word go, the company has been building scalable and reliable solutions for the EV industry.
Their first major breakthrough came in 2008 with the announcement of ‘infrastructure creation for plug-in vehicles.’ Soon, they became synonymous with EV chargers when vehicles like the Chevy Bolt, Nissan Leaf, and Model S started gaining traction.
Some of the major achievements of the company through the years-
Winner of ‘Global Cleantech 100’ for six years in a row
Listed among ‘World’s 100 Leading Sustainability Innovations’ by Sustaina
Featured in Time Magazine’s ‘50 Best Inventions’ of 2010
Winner of World Economic Forum’s ‘Technology Pioneer’ award
Found a place in ‘CNBC Disruptor 50’ list of companies
Named among the ‘100 Most Intriguing Entrepreneurs’ by Goldman Sachs
What Did They Get Right?
Unlike other companies in the EV infrastructure business, ChargePoint stations aren’t typically owned by the company.
Instead, it maintains the stations for property owners who install the setup on their premises as a value addition for their customers.
By cutting out the typical real estate expenses, ChargePoint struck a goldmine, and now, many plug-in service providers are expected to follow their suit.
A few groundbreaking deals and decisions made by the company:
Forged a deal with the National Association of Truck Stop Owners that lets them set up plug-in points at prime freeway locations
Interoperability deal with a contender, Volkswagen’s Electrify America, that allows ChargePoint members access an additional 30K stations
Major automakers like Nissan, BMW, Hyundai, and the likes have inked deals with them for easy access to the charging network
Tied up with Envision Solar international to kickstart renewable plug-in stations in areas where grid connectivity isn’t possible
Another area where they have been doing well is the residential chargers business. Their standard home outlet costs a good $699, but it offers services and utility that are best in class.
Besides being Wi-Fi enabled, it comes with a decent energy rating, and most importantly, the unit can be installed by a local electrician too.
With the Federal Government offering up to 30% in tax credits, consumers would not need a lot of convincing to install a residential station.
Where Is All the Funding Money Going?
Pasquale Romano, the CEO of ChargePoint, mentioned in an interview that all the IPO proceeds would be going towards growth activities undertaken in North America and Europe as well as repayment of debts. He adds that they aren’t exactly strapped for cash, but the time seems right for them to get listed on the stock market.
Their revenue has been increasing steadily in the last few years, but as is the story with many other EV infrastructure firms, ChargePoint is yet to record profit. By boosting marketing activities, increasing the density of stations in the suburbs, and investing in fast charging technologies, they would soon be able to call themselves a money-making company.
With 2.3 billion electric miles and 783 million MWh powered by ChargePoint, they are leaving no stone unturned to achieve their ambitious goal of 2.5 million stations in the next seven years.
What’s Next?
ChargePoint has been responsible for causing a seismic shift in the EV industry. Thanks to their VTOL charging solutions and partnership with Uber, a number of drivers now prefer electric rideshare options. A case in point is Gabe from Oakland, who bought a Chevrolet Bolt for all rideshare purposes and the company’s plug-ins seem to be serving him well.
At a time when the number of non-Tesla electric vehicles is on a rise, the need for an independent and extensive charging network is more than ever. So, there is no doubt whether ChargePoint has a future in the market.
On the other hand, we’ll have to wait and see if the IPO is simply going to create regulatory hurdles or act as a big boost for ChargePoint’s future.
Other service providers like Tesla’s Superchargers, EVgo, and Blink Charging seem to be giving them a tough fight in the market. Check out this blog post that outlines each company’s strengths here.
