Arrival, a British startup that produces zero-emission public transit automobiles, has listed on the Nasdaq with a present valuation of $13bn, making it one of many largest-ever listings of a UK tech firm.
The corporate’s founder, Russian telecoms tycoon and former deputy minister Denis Sverdlov, owned a 76% stake in Arrival on the level of IPO, in response to SEC filings, making his share value $9.8bn.
For the primary 5 years of Arrival, which was based in 2015, Sverdlov funded the corporate himself, piling $450m into it. In 2020, the corporate raised $300m from traders Hyundai Motor, BlackRock and Vladimir Potanin, considered one of Russia’s richest folks.
The corporate accomplished its IPO by way of a SPAC merger with CIIC Merger Corp, which is led by Peter Cuneo, the previous chief govt officer of Marvel Leisure.
What does Arrival do?
The corporate’s IPO comes earlier than it’s introduced any automobiles to market. It’s growing zero-emission electrical automobiles for industrial use: they’re constituted of a composite materials that the corporate says is lighter and cheaper than metal.
Arrival says its automobiles may be customised to particular corporations’ wants. In October final 12 months, it signed a cope with the United Parcel Service to offer 10ok automobiles and an choice to purchase an additional 10ok — a deal value $1.2bn. Arrival will even start trialling electrical buses on public roads within the UK from this autumn in a partnership with British bus operator First Bus.
Avinash Rugoobur, president of Arrival, advised Sifted that the corporate will use the cash raised by way of the IPO to give attention to bringing the automobiles to manufacturing.
“Our main focus is on execution — having spent the final six years rethinking the method for designing and constructing electrical automobiles from scratch, and growing our personal in-house expertise to allow our new methodology of manufacturing.”
The corporate estimates that its total addressable market is worth $280bn. Arrival stated it tasks being cash-flow optimistic by 2023 and producing a gross revenue of almost $4bn by 2024.
The corporate is betting on a microfactory manufacturing course of which it hopes will make it worthwhile even with restricted gross sales.
As an alternative of establishing one singular giant plant, Arrival plans to construct a community of microfactories near the cities the place automobiles are bought.
“There are greater than 560 cities on the earth which have a inhabitants of over 1m folks, and every of those cities might have a microfactory producing 10ok automobiles particularly tailor-made for the wants of that market,” Sverdlov said recently.
“This mannequin may be as scalable as McDonald’s or Starbucks.”
The corporate has two microfactories at current — one northwest of London within the city of Bicester, and the opposite in Rock Hill, South Carolina — and goals to have 31 vegetation by 2024.
“This decentralisation permits for a extra versatile and simply scalable method, so we are able to quickly reply to shifts in demand and specs for various kinds of automobiles,” explains Rugoobur.
“It additionally means we’re in a position to ship merchandise which might be 50% decrease in prices that different EVs, and that are worth aggressive to fossil gasoline equivalents.”
As soon as they’re prepared, Arrival says it expects every manufacturing facility to provide 10ok vans or 1k buses yearly.
Freya Pratty is Sifted’s information reporter. She tweets from @FPratty