Octopus Electric Vehicles raises £150m to fund salary sacrifice expansion

Octopus Electric Vehicles has raised £150 million to help expand its salary sacrifice offer.

The business, which is part of Octopus Energy Group, launched its salary sacrifice scheme in 2021 and offers a bundled package including a charger and discounted energy tariff.

This latest deal takes the total amount of funding raised to more than £650m in two years.

In the last two years, Octopus has helped more than 3,000 companies launch an electric car employee benefit scheme, with clients including McLaren, Nando’s and Zoopla. 

Octopus Electric Vehicles has increased its headcount tenfold since May 2021, creating more than 225 new jobs across offices in London, Weybridge, Brighton and Manchester. 

The business also recently expanded globally after launching Octopus Electric Vehicles in the US.

Fiona Howarth, Octopus Electric Vehicles chief executive, said: “Drivers are increasingly seeing the benefits of switching out of old gas guzzlers for electric cars.

“They are great to drive, better for the planet and can save over £1,000 a year in fuel.

“With demand soaring, we need manufacturers to continue to increase volumes.

“With this demand, the UK is ever more attractive for EV charging investment and a destination for new electric car brands."

Pollen Street’s credit strategy has completed four transactions that fund the expansion of electric fleets in the last 18 months.

Octopus Electric Vehicles sits within the wider Octopus Energy Group, which is expanding rapidly having received over $1bn (£780m) in funding over the last two years, giving it a valuation of $5bn (£3.9bn).