REV Mobilities increases your social capital to win contracts, Fund growth

Large or small social capital? “It’s a little incongruous, but it was necessary to raise capital to apply for grants and fill out project notices”, says Arnaud Pigounides, co-founder of REV Mobilities. The start-up wants to accelerate the conversion of buses, trucks and thermal vehicles to electric.

In order to work with the regions and local authorities and intend to respond to tenders, Arnaud Pigounides had no alternative but to increase the share capital of his company.

Inflate social capital to reassure

When he created REV Mobilities in November 2018 with Marc Tison, a former senior executive at the PSA group, Arnaud Pigounides thought that a company could have very significant value with a small amount of capital. The two co-founders thus created their company with an initial share capital of 100 euros.

REV Mobilities wants to convince individuals and communities to create a new automotive industry based on the circular economy and recycling. The goal for 2030 was announced: to recover and convert 300,000 vehicles to electric, both urban buses and professional and private vehicles, to give them a second greener use. The company estimates that 1.8 million tonnes of CO2 were saved in ten years, with the electrical retrofit reducing greenhouse gas emissions by 60%.

“Our start-up was destined from the beginning to raise quite large funds from series A, B and C, hence the low initial amount of share capital”, explains Arnaud Pigounides, former director of advertising agencies. Three years after the creation of their company and after having carried out three small fundraising with business angels, the founders were nevertheless obliged in October 2021 to inflate their share capital to 100,000 euros.

“For the regions and communities we plan to work with, this information is very important. Above all, it reflects the involvement we have in our company. This reassures them”, explains the president.

Capital that reflects the financial capacity

Social capital becomes, in fact, a strategic tool for the development of your business. Thanks to the influx of new resources, entrepreneurs are also becoming aware that they can claim to respond to bids from Ademe and France Relance. “It’s a little incongruous, but we had to raise capital to apply for grants and complete project calls. Without this, we cannot claim grants in excess of 100,000 euros. We had to have capital that reflected the industrial scope and our financial capacity”, adds Arnaud Pigounides.

In order to carry out this capital increase, it had to convene two extraordinary general meetings. The first decided the terms of the increase. The second noted the completion of the increase, brought the funds to a blocked bank account specifically for the operation and forwarded the capital increase formalities file to the registry office for registration.

Become a European player

The company, which is preparing to complete a €7 million fundraising in the first half of 2022, aims to obtain the first approvals in France by 2023 and a first portfolio of 15 adapted vehicles and buses. “Before, we could not produce vehicles and generate sales. It was necessary to structure the sector and work to obtain approvals. The engineering and safety time is relatively long”, explains the manager.

This has been done since April 3, 2020 and the change in regulations. “We spent the last three years developing it. Since 1954, the manufacturer’s authorization was required to modify an engine”, says the businessman. REV Mobilities wants to take advantage of the decarbonization trend to become a European player within two to three years.

The company, which has 14 employees, has created a bus and truck subsidiary, and will soon launch subsidiaries in Switzerland and Belgium. Its objective: to achieve a turnover of 70 million euros in 2023. Four thousand vehicle combustion engines could be replaced this year by a 100% certified and adapted electric motorisation.

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