🚗Driving into the Future: Mexico and LATAM stand at the cusp of an electric vehicle revolution

Dec 14, 2023

Welcome to the Paddock, your VIP access to unique insights from some of the best mobility founders out there and curated news and trends reshaping the mobility sector globally.

—Rodolfo, Enrique, Cecy, and Bernardo.

💡If you know of any startup that is also committed to #reshapingmobility by being more efficient, safer, and environmentally friendly reach us here.

🏁Come visit The Paddock to see the full portfolio of P.V. companies.

As we wrap up the year, we wanted to give a shout-out in this last 2023 issue of The Paddock and express our gratitude to all the startups shaking up the mobility scene and the founders driving them forward. A special thanks also goes out to our adventurous PORTCOs, co-investors, and shareholders who have been a blast to work with. And finally, here's to all the pretty sweet lessons learned along the way.

No doubt, 2023 was a wild ride with its fair share of challenges, and we're betting 2024 will bring more of the same – and we're totally here for it. Wishing you and your loved ones an amazing holiday season and a smooth slide into the new year ahead.

We're very excited about what's coming up on the horizon. The future of mobility looks bright with founders cooking up extraordinary ideas, groundbreaking technologies in the pipeline, and markets just waiting to be turned upside down. The world wants more sustainable and efficient mobility options, and guess what? We're all in to back those game-changers. Here's to an awesome future full of new ideas, shaking things up, and everyone hitting their stride. Happy holidays, and let's rock 2024!

Portfolio news

⚡️ Solvento just announced their new equity funding and $50M debt facility! Congratulations to the team on this funding as well as the launch of Solvento Audita, their AI-powered auditing and invoicing software. Amazing to see their continued momentum in transforming the payment and credit infrastructure of Latin America’s trucking sector.

⚡️ We invite you to listen to the piece on the Plaid Pantry Electric Era PowerNode charging station, created by KGW News from Portland, Oregon. The CEO of Plaid Pantry, Jonathan Polonsky, and Electric Era's VP of Software, Hasitha Dharmasiri, were interviewed for the piece, offering outstanding insights about the EV charging industry.

Interesting Reads

🔍 Driving into the Future: Unleashing the Potential of Mexico and Latin America in the Electric Vehicle Market

In recent years, the automotive landscape has witnessed a dynamic shift towards sustainability and eco-friendly solutions, with electric vehicles (EVs) leading the charge. While the focus has often been on developed markets, the potential for a thriving electric vehicle market in Mexico and Latin America (Latam) is becoming increasingly evident. Here's a glimpse into why this region holds the key to a powerful future for electric mobility.

1. Growing Environmental Awareness:

As environmental consciousness rises globally, individuals and governments are actively seeking cleaner transportation alternatives. In Mexico and Latam, there is a growing awareness of the impact of traditional combustion engines on air quality and climate change. This shift in mindset provides a fertile ground for the adoption of electric vehicles, aligning with global efforts to reduce carbon footprints.

2. Abundant Renewable Resources:

Mexico and several countries in Latam are endowed with abundant renewable energy sources, including solar and wind power. The availability of these resources presents a unique opportunity for the development of sustainable energy ecosystems to support the charging infrastructure for electric vehicles. Harnessing clean energy for EV charging aligns with the overarching goal of reducing dependency on fossil fuels.

3. Government Initiatives and Incentives:

Governments across Mexico and Latam are recognizing the importance of transitioning towards cleaner transportation. Incentives such as tax credits, subsidies, and regulatory frameworks supporting electric vehicle adoption are emerging. These initiatives not only encourage individuals to make the switch to electric but also attract investments from automakers and charging infrastructure providers.

4. Economic Growth and Urbanization:

The economic growth observed in many Latam countries is accompanied by increased urbanization. As city populations rise, so do concerns about traffic congestion and pollution. Electric vehicles, with their potential for reduced emissions and noise pollution, emerge as a solution to address these challenges, making them an attractive option for city dwellers.

5. Strategic Partnerships and Investments:

Major automotive players and technology companies are recognizing the untapped potential in the Mexican and Latam electric vehicle market. Collaborations between local governments, global corporations, and startups are fostering the development of innovative solutions and infrastructure necessary for widespread electric mobility.

6. Cost Efficiency and Affordability:

With advancements in battery technology and economies of scale, the cost of manufacturing electric vehicles is decreasing. This trend contributes to the affordability of EVs, making them more accessible to a broader range of consumers in Mexico and Latam. The lower operating costs and potential long-term savings further enhance the appeal of electric vehicles.

7. Effect of Nearshoring on the Automotive Industry:

The trend of nearshoring, where companies establish production facilities closer to their main markets, is gaining prominence in the automotive industry. Mexico, with its strategic geographical location, has become a hub for nearshoring. This not only reduces production costs but also facilitates a more efficient supply chain, making it an attractive destination for electric vehicle manufacturing. As a result, the burgeoning automotive industry in Mexico contributes significantly to the growth of the electric vehicle market in the region.

Conclusion:

Mexico and Latin America stand at the cusp of an electric vehicle revolution. With a confluence of environmental awareness, abundant renewable resources, supportive government policies, urbanization trends, strategic investments, and increasing affordability, and the impact of nearshoring, the region holds immense potential to become a powerful market for electric mobility. As the wheels of change set in motion, the road ahead promises a cleaner, greener, and more sustainable future for transportation in Mexico and across Latin America.

Some deals we found interesting

🚀 Able-On, a Brazilian mobility startup that combines AI and Analytics with Connectivity and Internet of Things (IoT), has concluded its first round of investments worth R$7.25 million. The funding was led by ITA Frotas, a vehicle rental company for fleets, who were attracted to Able-On's customizable and flexible platform for clients' business rules. (10.Nov.2023)

🚀 Biped.ai, a Lausanne-based tech startup announced a successful funding round of CHF 1.2 million. The investment underscores the tech community's confidence in biped.ai's innovative solution for enhancing the mobility of blind and visually impaired individuals. The company was supported by Venture Kick, winning the third stage of the program in 2021, and participated in both Venture Leaders Medtech and Venture Leaders Mobile in 2023. (21.Nov.2023)

🚀 Element Energy, a Calif.-based developer of advanced battery management technology for energy storage and EV applications, raised $73 million in Series B funding from Cohort Ventures, Mitsubishi Heavy Industries, Drive Catalyst, FM Capital, and others. (14.Nov.2023)

🚀 Eliq, Sweden-based Swedish home energy startup has raised a €10 million growth round. The funding round saw participation from existing investor Inven Capital with new investors, Axpo and Valkea. Axpo and Fortum are existing CVCs of Eliq’s current customers, along with additional debt financing. (21.Nov.2023)

🚀 EMotorad, an India-based startup that manufactures electric bicycles, raised a $20 million Series B round led by Panthera Growth Partners, with Alteria Capital, xto10x Technologies, and previous investor Green Frontier Capital also taking part. The company has raised a total of $22.5 million. (26.Nov.2023)

🚀 Foretellix, a Tel Aviv startup whose software tests driver assistance and autonomous systems in new vehicles from customers such as Volvo, Daimler, Isuzu, and Toyota, raised a $85 million Series C round led by 83North. Other participants in the round included Temasek, Woven Capital (Toyota's venture fund), Nvidia, and Artofin, as well as previous. The company has raised a total of $135 million. (5.Dec.2023)

🚀 Ghost Autonomy, a Calif.-based pioneer in scalable autonomy software for consumer cars, announced a $5 million investment from the OpenAI Startup Fund to bring large-scale, multi-modal large language models (MLLMs) to autonomous driving. (8.Nov.2023)

🚀 GoPass, a Colombian startup developing a comprehensive ecosystem payment for toll booths, gas stations, car wash services, self-service commerce, towing services, and more, closed a $15M funding round led by Kaszek Ventures. The funding will boost client acquisition and the digitization of payments at toll booth lots. (13.Nov.2023)

🚀 Gravity, a New York City-based provider of electric vehicle chargers and other EV infrastructure, raised $13 million in seed funding. Google Ventures led the round and was joined by others. (16.Nov.2023)

🚀 May Mobility, a startup based in Ann Arbor, MI, developing self-driving systems for municipal and business customers, raised a $105 million Series D round led by NTT Group, with Toyota Ventures, Aioi Nissay Dowa Insurance Co., State Farm Ventures, BMW i Ventures, Cyrus Capital, and Trucks VC also participating. The company has raised a total of $300 million. (7.Nov.2023)

🚀 Monterra, a San Francisco-based developer of software designed to automate the design and planning of EV charging installations, raised $2.5 million in pre-seed funding. Base10 Partners led the round and were joined by Future Climate Venture Studio, Very Serious Ventures, and angel investors. (28.Nov.2023)

🚀 Optiwatt, a San Francisco startup whose app helps consumers optimize energy us for their EVs and homes, raised a $7 million Series A round led by Navitas Capital, with GV, Active Impact Investments, Urban Innovation Fund, and Thin Line Capital also investing. (16.Nov.2023)

🚀 Princeton NuEnergy, a Bordentown, NJ-based recycler of lithium-ion battery materials, raised $16 million in a Series A funding round led by Wistron Corporation, with participation from new investors Honda Motor Co., GS Futures and Traxys North America, as well as existing investors Greenland Technologies, Shell Ventures and WorldQuant Ventures. (6.Nov.2023)

🚀 Revolv, a four-year-old San Francisco startup that aims to help commercial fleets transition from internal combustion engines to electric through providing assistance with incentive regimes, charging infrastructure, and financing, raised a $25 million round. Greenbacker Capital Management was the deal lead. (16.Nov.2023)

🚀 Spark Car Wash, a Summit, N.J.-based express car wash operator, raised $30 million in Series B funding from GoPoint Ventures to expand its high-tech concept. (13.Nov.2023)

🚀 Teclogi, a Colombian startup that aims to become the digital center for cargo transportation. The company recently secured USD $4.6 million in funding and plans to expand its operations to other cities in Colombia and later to Peru, Ecuador, and Mexico. (13.Nov.2023)

🚀 Tenet, a New York City-based platform designed to provide better loan terms for electric vehicle customers, raised $10 million in Series A funding. Nyca Partners led the round and was joined by Assurant Ventures and Giant Ventures. (15.Nov.2023)

🚀 Trackstar, a NYC-based provider of an API for warehouse management systems, raised $2.6M in Seed funding. The round was led by TMV and the company intends to use the funds to accelerate its mission to integrate with warehouse management systems globally. (4.Dec.2023)

🚀 Upway, a French startup that refurbishes and resells electric bikes and recently launched in the U.S., raised $30 million in a Series B led by Korelya Capital for its e-bike marketplace. (16.Nov.2023)

🚀 Vammo, a Sao Paulo-based startup that wants to scale electric motorcycle battery swapping in Latin America, has raised a $30 million Series A round to capture the growth in popularity of motorcycles across the region. The round was led by Monashees with participation from Maniv Mobility. (11.Dec.2023)

🚀 Velca, a Spanish e-bike and electric motorcycle specialist, raised a €5.3 million Series A led by Sherry Ventures, Noso Capital and BeHappy Investments. (30.Nov.2023)

🚀 Wakeo, a Paris-bases startup that provides a provides a SaaS platform to bring real-time visibility on intercontinental multimodal freight transport flows, has secured €18 million led by Statkraft Ventures. (4.Dec.2023)

A piece of good news

🌎 As we step into the new year, let's talk resolutions – you know, that thing pretty much everyone does.

So, the idea of making resolutions isn't a recent fad; it goes way back, like 4,000 years ago to Ancient Babylonians. They had this 12-day party called Akitu, mixing up religion, myths, and society vibes to show they conquered chaos. Romans picked it up, threw their own party on March 15, until Julius Caesar thought, "Nah, let's switch to January 1."

Picture the medieval era – knights renewing vows with hands on a peacock. Yeah, seriously. Religion played a big role in resolutions back then.

Fast forward to now, Pope Gregory XIII shuffled the dates, making January 1 the official start of the new year. In the 19th century, thanks to Protestantism, resolutions got a bit religious. But hold up, the 1800s also had people making fun of resolutions – go figure.

Even though resolutions these days are more about personal growth and fitting into society, the core idea is the same. For over 4,000 years, the new year has been a symbol of hitting the reset button, proof that our drive for improvement never gets old.