Electric Vehicle Manufacturer Arrival Sparks New InvestmentPublished on: October 16, 2020
Categorized in: News
Innovations in the world are becoming so relentless, giving birth to electric vehicles in today’s market. The electric car innovation has since created a wave of new investment opportunities in the world.
The commercial electronic vehicle Arrival has attracted a whopping $118 million from BlackRock. These funds will help the Electronic Vehicle (E.V.) manufacturer scale up its production in the United States and all over Europe. Arrival is a small business yet, but the infused funds have helped it plug more into choosing diverse strategy that will upscale the world’s company.
Arrival was launched in 2015, and it was an employer of about 800 workers. However, the company was largely off the radar and was fairly known in the world. The U.K.-based company did not let its business model known to the world, but it still got the deal. The deal is a testament to the uniqueness of their approach. The company grew out of its unpopular mode earlier when Kia and Hyundai first bought a hundred-million-euro stake in the industry. Not long after that did UPS came knocking. Now Arrival is worth about $3billion.
Also, Arrival made the notice of the big guns the plan to target the commercial van market. What made Arrival so spectacular was that they created reliability and durability, which is majorly what buyers of vehicles readily need. Instead of going for the fancy and automobile industry, they chose the commercial vehicle. Therefore, they were able to lower the barrier for entry. Industry analyst Michael Harley says, “It’s an excellent space to be in,” Harley says. “They’ve decided to tap into the largest segment.”
Founder of Arrival Denis Sverdlov said, “We are excited to welcome BlackRock as a strategic financial investor with its excellent track record in ESG,” “This additional capital will be invested into Arrival’s growth, as we deepen and expand our presence in the U.S. and other new markets globally. With our new Microfactory in South Carolina, we are looking forward to partnering with more cities and companies to create a sustainable future.”
Furthermore, the company has made a major breakthrough in the electric commercial vehicle market since its infusion. Arrival is on hand to produce a whopping 10,000 electric vehicles as ordered from UPS, one of the world’s biggest logistic firms. Also, there is an option to produce another 10,000 should the first order come out good. What this shows is that there is a big demand for electric vehicles in the present market. This deal with UPS could also grow as far as $500 million if things go as planned from both ends.
Furthermore, the invention of Arrival has changed the automotive industry, thanks to its unique approach to the design of the vehicles. They have adopted the Low CapEx, a readily scalable micro-factories that works anywhere in the world.
Overall, Arrival is doing something right in the electric commercial vehicle industry, and they are not even started yet. Should Arrival continue in this scalable strategy, there is no stopping them.