AUSTRALIAN rideshare subscription business Splend has received a strong endorsement for its EV-centric business model with a $100 million investment from equity company IFM Investors in return for a 49 per cent stake.

The injection of funds and part-ownership means Splend can accelerate its growth plans throughout other markets and also expand EV adoption and develop a dedicated EV charging infrastructure.IFM, which started in Australia as an investor of pension funds in the 1990s and now has almost $225 billion in infrastructure investments under management, said its Growth Partners Fund 2 has made the investment in Splend alongside HESTA and other co-investors.

“Splend has one of the largest electric vehicle fleets in Australia and is supporting rideshare drivers to adopt lower emission vehicles through its all-inclusive flexible finance and ownership offerings,” IFM said in a statement.

“IFM’s investment will support Splend to further expand their fleet and operations in Australia and the United Kingdom and the construction of dedicated rideshare charging infrastructure in Australia.”

It is the second major investment made in Splend by an equity capital firm. In April 2022, it raised $150 million for expansion and fuel its plans to increase its fleet of EV vehicles to 10,000 by 2024.  

The funding round was led by UK-based Pollen Street Capital, a private capital asset manager focused on ESG-focused investments. Partner at Pollen Street Capital Michael Katramados said the capital raise would support Splend’s mission to decarbonise rideshare and delivery services. 

“Splend is dedicated to supporting its members through all aspects of on-demand driving and the team’s focus on transitioning the industry to green mobility is something we are proud to support,” Mr Katramados said in a statement accompanying the announcement in  2022.

Splend founder and CEO Chris King said the IFM deal was “the finishing touch on what has been a huge 2024 at Splend and to be honest a culmination of one heck of a ride over the past nine years.”

Splend started in Sydney in July 2015, before national expansion across Australia in 2016, then internationally in 2018 before COVID hit and slowed growth in 2020 before “finally coming out the other end to where we are today,” Mr King said.

Splend founder and CEO Chris King

Splend’s commitment to boosting its EV fleet followed action by major rideshare businesses, including Uber, to commit to sustainability principles. In 2021, Uber said it would halve its service rates for EV drivers in Australia to help promote the uptake of electric vehicles.

Globally, Uber has also been investing, expanding Uber Green, its EV fleet, and committing $800 million in resources it says will help its drivers transition to EVs by 2025.