FOSTER CITY — Motiv Power Systems, a company delivering all-electric chassis with a software platform for the electrification of medium-duty trucks and buses, has secured $15 million of additional funding from GMAG Holdings Corp. The funding will be made by means of convertible notes that are expected to be converted into a Series C funding round, which Motiv is in the process of raising.
With this new financing, Motiv aims to further scale its manufacturing operations, as well as fund technology and geographic expansion.
“Despite the challenges created by the current pandemic, Motiv’s progress continues at an impressive upward trajectory,” said Matt Gallaher, CFO at GMAG Holdings Corp. “We see great potential in the company’s future as the leading player in the commercial EV space.”
This new funding comes as the commercial electric vehicle (EV) market is gaining momentum as fleet owners look to meet new regulations, reduce costs, and answer social pressures for cleaner transportation options. As an example, the California Advanced Clean Truck rule, implemented by California’s Air Resources Board, mandates 50 percent of trucks sold in California must be zero-emissions by 2035, and 100 percent by 2045.
“This funding demonstrates the sustained commitment of GMAG Holdings, Motiv’s largest investor, to support our growth,” said Matt O’Leary, Motiv Chairman and CEO. “Our progress with down costing, investment in a strong customer support team, and a proven 5th generation technology have resulted in some 200 vehicle orders, more than half of which are repeat orders from happy customers.”
In April, Motiv celebrated 1 million electric miles logged among several of the largest fleets in North America, equating to 900 plus metric tons of greenhouse gas (GHG) eliminated, which is the equivalent to 213 passenger vehicles driven for one year.
“Time and again, our customers give Motiv high marks on their vehicle performance across a range of diverse medium-duty vehicles, from trucks and buses, to specialty vehicles and shuttles,” continued O’Leary. “We leverage this feedback into higher-performing and even more-reliable and lower-cost products with every generation.”