4 electric vehicle technology IPOs to watch for in 2022
Plus the largest anticipated tech IPOs of the year.
The wave of initial public offerings to hit the market last year may continue thanks in part to companies focused on electric vehicles and related technologies.
For years money has been pouring into the mobility technology sector helping to spur development. Companies in the space raised over $100 billion from venture capital and private equity firms last year, up from $67 billion in 2020. That money and interest has let some firms stay private longer than in years past.
Last year saw the number of mobility technology companies going public triple to 42 from 14 in 2020. The amount of money raised saw an almost four-fold increase soaring to $29 billion from $8 billion in the prior year. As outlined in PitchBook’s 2022 Emerging Technology Outlook, some firms that may go public this year are involved with electric vehicles in both the retail and commercial space.
For this article, we're highlighting four IPOs to watch this year.
Mobility tech is on the move
Mobility tech, which includes electric vehicle manufacturers, EV parts and infrastructure suppliers, and autonomous driving software companies, has been booming over the past couple years as consumer demand has started to shift toward electric vehicles.
Both Morningstar and PitchBook analysts expect this EV momentum to continue. Morningstar analysts predict that EVs and hybrids will make up two out of three new vehicles sold by 2030. Beyond the highly competitive EV manufacturing space, the shift in demand creates opportunity for companies that support the growing industry in different capacities.
On the private side, PitchBook senior analyst Asad Hussain predicts that venture capital and private equity firms that focus on mobility tech will continue to raise more funds in 2022 to continue the growth trend of the last couple years. As automakers and other transportation incumbents face potential disruption from electrification and automation, they’ll turn to these firms to find investment opportunities in mobility startups.
Emerging companies in this space have found a cozy home in the private markets with plenty of VC and PE capital to go around. Still, many companies have already made successful public debuts in the past year, most notably Rivian’s (RIVN) $67.7 billion IPO, which has paved the way for future offerings.
Two mobility tech startups to watch in 2022:
Ample addresses one of the main concerns of electric vehicle drivers – the time it takes to charge their batteries. This tech startup creates battery swapping stations that aim to make operating electric vehicles more efficient. Drivers can use these stations to quickly exchange their electric vehicle’s battery with a fully charged one, so they don’t have to spend time waiting for their battery to charge. The stations are marketed as easy and economical to install – they use autonomous robotics technology to swap out the batteries, no staffing required. Instead of waiting 30-plus minutes for a full charge, drivers can be on the road in less than ten.
actnano is a developer of a smart coating technology that protects automotive and consumer electronics from the elements. This coating is particularly helpful for protecting driver assistance and autonomous driving technology from corrosion. The company recently received over $20 million in funding through a deal led by BMW I Ventures, the corporate investing arm of the vehicle manufacturer.
Supply chain tech is going electric
The enthusiasm around EVs isn’t just for passenger vehicles. Much of what is on the market today is designed for passenger use, so PitchBook senior analyst Asad Hussain sees significant opportunity for startups to gain prominence in commercial supply chains in 2022, particularly for last-mile delivery. Without the cost benefit of bulk distribution in this last step of the delivery process, last-mile delivery is often the most expensive segment of the supply chain. Companies that can lower this cost stand to gain major market share.
In the 2022 Emerging Technology Outlook, PitchBook analysts say they expect larger investments in startups that produce electric commercial vehicles that lower the cost of delivery and reduce emissions. In an on-demand economy where consumers expect fast, even same-day, deliveries right to their doors, companies that can lower the per-mile cost of delivery stand to gain a major share of the market.
Two supply chain companies to watch in 2022:
Indigo Technologies manufactures small commercial electric vehicles that optimize the cost of owning and operating fleets. The vehicles are designed for ride-sharing services and last mile delivery. The vehicles also integrate technology, like integrating data with drivers’ mobile phones, to help increase efficiency and productivity.
Zoomo is an Australia-based developer of e-bikes designed for short-distance delivery. The bikes offer technology like GPS tracking and fast charging to give a sustainable, low-cost alternative to traditional vehicles for the on-demand delivery industry.
Other potential tech IPOs to keep tabs on
While the massive amount of fundraising that startups have received over the past decade is causing companies to stay private longer, it also means that there are more startups going public with massive valuations. Here are some of the largest anticipated tech IPOs of the year:
Chime is a developer of a mobile banking and finance platform. The company is already worth $25 billion after a deal in September and may use the funding to position itself for a potential IPO in the first half of 2022. The jump to the public markets could value the digital bank at as much as $45 billion.
Discord is an online chat service popular among gamers. While the company hasn’t made any announcements regarding an IPO, it seems likely after the company ended acquisition talks with Microsoft last year. Microsoft was looking to acquire the startup for at least $10 billion before the talks ended in April.
Instacart operates an on-demand goods delivery platform that allows for same-day delivery of essentials like groceries. The startup was highly anticipated to go public last year but made no moves to make the switch. The company could be worth as much as $50 billion.
Reddit is a social media powerhouse. The company made waves when it made a confidential filing to go public in December, but has yet to disclose further details of the IPO. The deal is expected to be worth $15 billion, according to PitchBook.
Stripe is a payments-processing juggernaut that is widely used by companies to accept the web and mobile device. The startup has had ample funding, raising over $2 billion. All in, the company may be worth as much as $152 billion. That valuation could climb higher if Stripe decides to go public.