UK EV Startup Arrival Announces a $300Mn Funding Lifeline

The UK's troubled EV startup, Arrival, has announced a $300 million equity financing line established with Westwood Capital. The company will prioritise commencing production of a Class 4 XL Delivery Van in the Charlotte factory in late 2024.

Arrival intends to lowering its current, targeted cash spend to no more than $35 million/quarter which significantly reduces the size of investment required to fund the business this year.

It is finalising a 50% reduction of the company’s global workforce in Q1 that will result in less than 800 employees by the end of March 2023.

With available capital resources and the additional initiatives to reduce working capital, it expects to have sufficient liquidity to fund the business into late 2023 without the investments required for XL production.

Igor Torgov, previously an Arrival executive, has been appointed as CEO to lead the execution of the newly approved plan, with his knowledge of Arrival’s business priorities, technologies and talent.

Torgov says: “I have come into the business as CEO at a critical time. Arrival has developed innovative technologies and know-how which position us strongly to address the considerable EV market opportunity. We have now taken important steps to help us take advantage of this opportunity, including raising additional capital as well as placing a sharper focus on the key U.S. market and driving significant efficiency improvements."

He adds: "Looking forward, we will continue developing and validating our vehicles this year. We are also progressing with encouraging conversations with potential partners and investors to effect the next stage of the business plan - bringing Vans into production in Charlotte in late 2024.”

Arrival’s in-house technologies enable a unique approach to producing vehicles using rapidly-scalable, local Microfactories.