ZGI Capital Fuels Electrify's Growth with a €1.5 Million Investment
ZGI Capital funding will enable Electrify (https://electricbus.lv/) to expand its operations by providing working capital for producing electric minibuses. This will help to reduce the environmental impact of public transport. This investment is a significant step towards sustainable mobility and innovation in Latvia's transportation sector.
Edgars Cimermanis, Chairman of the Board at ZGI Capital, shared his enthusiasm for the partnership: “We are pleased to start cooperating with Electrify. The company's experienced team, historical track record, and potential future business opportunities give us confidence in its ability to realize its development plans and ensure further growth in Latvia's automotive industry."
Closer Look at Electrify:
Founded in 2019, SIA Electrify is the only car manufacturer in Latvia, producing minibuses for urban and intercity public transport, school transport, and other individual customer needs.
Electric passenger minibuses are in high demand in routes where large buses simply cannot operate because of lack of manoeuvrability. For example in smaller cities with narrow streets and lower passenger flow. As part of the European Green Deal, significant investments are currently being made in public transport and mobility improvements in many European cities. These investments emphasize zero-emission transport and service convenience. Among other things, this creates a high demand for environmentally friendly buses. Services such as demand-responsive public transport and the integration of both passenger and goods transportation in one solution are gaining popularity. The minibuses manufactured by Electrify are well-suited for such services.
Agris Amoliņš, co-founder and CEO of SIA Electrify: "Electrify's passenger electric minibuses are the most innovative and technologically advanced on the European market today. About half of our production is exported to countries such as Estonia, Lithuania, Germany, and Norway. In 2023, Electrify signed a contract with one of the largest passenger transporters in the Norwegian and Swedish markets. This is where we see the greatest potential. Our products are in high demand in Norway. Starting from 2025, the purchase of minibuses with internal combustion engines will be prohibited in Norway. In 2024, we plan to increase our turnover by more than 500%, and ZGI Capital's investment will provide the necessary working capital to meet this goal."
About ZGI Capital
With a history dating back to 2005, ZGI Capital has been a key player in fostering growth within the Baltic region's SME sector through strategic investments. The investment in Electrify was made from ZGI Capital's fourth-generation growth capital fund, totaling €32.5 million. €19.5 million from this amount is financing from ALTUM and funded by the European Regional Development Fund (ERDF) and public finance resources. ZGI Capital has started working on creating the next-generation growth capital fund to continue investing in small and medium-sized businesses in the Baltic region.