FLO secures $136 million in Series E equity financing
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EV Charging
Jun 11, 2024
Brian Banks

The charging network is looking to sow the cash into expanding its network footprint, new products and new market segments

FLO president and CEO Louis Tremblay says the new funding comes at an opportune time: “We see a lot of [potential] growth in the market, a lot of market share for the taking.” Photo: FLO

The charging network is looking to sow the cash into expanding its network footprint, new products and new market segments

EV charging network operator and equipment developer FLO today announced the largest equity financing in the company’s history.

FLO, based in Quebec City, with operations in Michigan and a charging network that spans North America, has secured $136 million in long-term capital.

The deal is principally a Series E equity financing led by Export Development Canada (EDC). It is also supported by FLO’s other existing investors: Caisse de dépôt et placement du Québec, Investissement Québec, Business Development Bank of Canada, Energy Impact Partners and MacKinnon, Bennett & Co. Inc.

FLO says the $136 million will enable it to continue to invest and expand in all areas of its business: network deployment and expansion, rollout of its new Ultra DC fast charger and latest home residential chargers and charging solutions development.

Market share for the taking

“After 15 years [as a company], this is the perfect time for us to really double down on our next phase of growth,” says Louis Tremblay, FLO’s president and CEO, in an interview with Electric Autonomy.

“When you look at the market, there’s a lot of gaps in terms of the number [of chargers deployed], in terms of reliable charging. And that’s our bread and butter. We see a lot of [potential] growth in the market, a lot of market share for the taking.”

The last equity financing round for FLO took place in 2021. In April 2023, it struck a $220-million loan deal with the Canada Infrastructure Bank (CIB) to install more than 2,000 fast-charging ports at approximately 400 sites across Canada over a four-year period. Tremblay says today’s equity financing will complement the CIB funds in deploying the FLO owned-and-operated chargers associated with that initiative.

South of the border, the financing will also help to drive FLO’s growth. There, just last month, the Biden administration opened applications for a new US$1.3-billion funding opportunity for EV charging infrastructure.

Those funds flow from two other signature programs brought about by the earlier passage of the Bipartisan Infrastructure Law — the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program and the National Electric Vehicle Infrastructure (NEVI) Formula Program.

Confident of continued growth

Beyond government incentives, Tremblay says the maturing of the EV market is just as important in stoking demand for more charging infrastructure in both countries.

“For the first time, I think, the consumer is in the driver’s seat,” Tremblay says. “There’s product availability. This market is growing and will continue to grow.”

While this view may be at odds with much of the recent rhetoric about the EV market slowing down, Tremblay is not concerned — and neither, presumably, are FLO’s investors.

“The economy as a whole, it’s not the same backdrop as it was [immediately] post-COVID. But still, if you look at our growth, it’s really positive,” Tremblay states.

“I’m not saying there’s not many charging companies struggling. But what I can tell you is that FLO is really strong and we are really excited about our next phase of growth.”

That next phase includes a new product lineup. FLO just began customer deliveries of its new Ultra DC fast charger, capable of delivering 320 kW of power. It also recently unveiled its next generation of residential chargers, the X3, X6 and X8, with the latter featuring 80A/19.2 kW output.

Future IPO a possibility

With a Series E funding round under its belt, FLO is now at a stage where many companies’ next rounding of equity funding is through an initial public offering.

Tremblay neither embraces nor dismisses that prospect.

“Additional equity round, loan, you know, IPO, whatever the option, these are just means to keep on growing profitably. So I cannot say that we’re not open to, you know, any of those. But definitely we want to keep growing this company with discipline,” he says.

“You have to pace your IPO, as I’m sure you know. But definitely this is something we’ll consider if we’re ever there one day.”

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