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Highlights
- IFM Investors and HESTA team up for a 49% stake in Splend Group.
- Splend is one of Australia's largest electric vehicle fleets, focusing on rideshare electrification.
- Investment will support fleet expansion and the development of EV charging infrastructure.
In an exciting development, private markets manager IFM Investors (IFM) and superannuation fund HESTA have announced a significant joint investment in Splend Group (SPG), a leading provider of electric vehicles (EV) for rideshare drivers. The deal, which includes IFM and HESTA alongside other co-investors, will see them acquire a 49% stake in the Australian company.
Founded in 2015, Splend has established itself as a key player in the transition to clean energy, with one of the largest electric vehicle fleets in the country. The company provides rideshare drivers with affordable and flexible vehicle ownership options, helping them transition to lower-emission EVs. This initiative allows drivers to maximize their earnings potential while contributing to the broader effort of reducing transportation-related emissions.
With nearly 7,000 vehicles across Australia and the UK, Splend's impact is significant, and the latest investment by IFM Investors is designed to take their operations to the next level. IFM’s investment will enable Splend Group to further expand its fleet, facilitating growth in both current and new markets.
This move also signals a more focused approach on developing dedicated EV charging infrastructure in Australia. The growing network of EV chargers will help reduce the barriers to EV adoption, making the transition easier for both drivers and passengers. By backing these strategic initiatives, the investment helps advance the broader decarbonization efforts, not only within the rideshare industry but also within the transportation sector as a whole.
Splend has already garnered additional financial backing, with a $300 million debt financing facility secured from Macquarie and a $40 million facility from the Clean Energy Finance Corporation. These financial boosts complement the investment from IFM Investors and HESTA and enable further scaling of the company’s operations.
As IFM Investors executive director of private equity, Adrian Kerley, shared, "We are very pleased to be investing in a company like Splend, which fits well with our focus on tech-enabled service companies and energy transition objectives." Likewise, Chris King, CEO of Splend, expressed his excitement about the partnership, highlighting how the investment will fuel their next phase of growth by developing EV infrastructure and expanding vehicle offerings. This collaboration sets the stage for a future where rideshare fleets are more accessible and cost-effective, pushing the transition to a greener and more sustainable transportation ecosystem forward.
