SparkCharge Raises $30M for Fleet Electrification

The Challenge of Fleet Electrification

The transition to electric vehicles presents a significant logistical hurdle for businesses: the classic chicken-and-egg dilemma. Determining whether to invest in vehicles or the necessary charging infrastructure first is a critical decision.

Surprisingly, this fundamental question isn't always thoroughly considered. Joshua Aviv, the founder and CEO of SparkCharge, reports that numerous fleets have contacted his company after acquiring vehicles, stating they lack the means to service or charge them. He shared this insight with TechCrunch.

While some organizations demonstrate greater foresight, providing SparkCharge with advance notice – occasionally extending to several weeks – this isn’t universal. This aligns with Aviv’s core proposition: prioritize vehicle acquisition and delegate charging responsibilities to SparkCharge.

SparkCharge's Evolution to Charging-as-a-Service

This represents a shift from SparkCharge’s initial focus on mobile EV charging. The company previously collaborated with AllState to assist EV drivers experiencing range issues. Currently, SparkCharge provides a “charging-as-a-service” model.

Under this arrangement, fleets enter into agreements to purchase electricity based on kilowatt-hour consumption, and SparkCharge manages the entire charging process.

The company’s operational reach now encompasses all 50 U.S. states, as well as Canada and Mexico. To facilitate further expansion, SparkCharge has secured $15.5 million in a Series A-1 funding round, spearheaded by Monte’s Fam, with contributions from Cleveland Avenue, Collab Capital, Elemental Impact, MarcyPen, and non sibi ventures, as exclusively reported to TechCrunch.

In addition to the equity investment, SparkCharge has obtained a $15 million venture loan from Horizon Technology Finance Corporation.

Addressing Infrastructure Gaps

Aviv established SparkCharge in 2018, recognizing the nascent stage of the electric vehicle revolution. Beyond Tesla, the availability of rapid charging infrastructure was limited. However, businesses were increasingly drawn to electrification due to the potential for reduced fuel and maintenance expenses.

Over the past seven years, fast-charging technology has advanced considerably, but its distribution remains uneven.

“Many fleets are located in central America or various coastal regions,” Aviv explained. These customers often manage a substantial number of EVs requiring daily charging, particularly at ports, railheads, and automotive manufacturing facilities.

“These operations frequently run continuously,” Aviv added. “Their priority is to efficiently charge vehicles and return them to service.”

Even in areas with ample fast chargers, many fleets prefer dedicated charging solutions for greater control over charging schedules. However, constructing depot charging infrastructure can be costly and subject to delays due to grid interconnection challenges.

SparkCharge's Flexible Solutions

“We can provide comprehensive charging services, managing all vehicles without requiring customers to navigate grid delays or undertake construction projects like trenching and tunneling,” Aviv stated.

SparkCharge frequently utilizes mobile chargers powered by batteries or generators, capable of running on propane, natural gas, or hydrogen. The company offers options for equipment drop-off with customer-managed charging, or a full-service “white glove” approach where SparkCharge handles all aspects of the charging process, including connection. The company can also assist with transitioning to permanent infrastructure as customer needs evolve. Currently, 95% of SparkCharge’s clientele utilize its off-grid charging solutions, according to Aviv.

Pricing varies based on fleet size and consumption, typically ranging from 35 to 60 cents per kilowatt-hour, a rate comparable to many public fast chargers.

“Fleets pay only for the kilowatt-hours they consume, offering flexibility and scalability. This allows them to adapt to fluctuations in demand without incurring unnecessary costs,” Aviv clarified. “Whether usage increases or decreases, they are only billed accordingly.”