The Croatian sports car manufacturer Rimac received a total of 500 million euros in fresh money in its latest financing round. According to the company, the funds come from the “Vision 2 Fund” of the Japanese technology investor soft bank, the US investment bank Goldman Sachs and from the VW subsidiary Porsche, which holds 45 percent of the “Bugatti Rimac” vehicle division. With the new financing round, Rimac’s valuation increases to more than two billion euros.
The money should be used primarily for the further growth of the company, said company founder and main owner Mate Rimac. In particular, the supply business will be expanded.
Rimac ruled out a quick IPO. “We think very long-term,” he said; he is concerned with a horizon of 100 years. For this reason, Rimac also decided against an IPO through the back door via a Spac. “I’m very happy with it, it was a good decision.” Before going public, the company needs to mature a bit and make business more predictable. Rimac cited annual sales of one billion euros as the threshold – the company is currently generating around half of that. “Why did the Spacs fail – they made promises they couldn’t keep,” Rimac said.
Vehicle business merged with Bugatti – Porsche involved as shareholder in financing round
The electric car startup merged its vehicle business with Bugatti last year under the Bugatti Rimac name. The VW subsidiary Porsche holds 45 percent of the joint venture, the rest is with the Rimac Holding. Bugatti Rimac is currently developing the $2.5 million Rimac Nevera Hypercar, a 1,914 horsepower electric vehicle.
Porsche holds a total of 20 percent of Rimac through its 45 percent minority stake in the Bugatti Rimac joint venture. As an important Rimac shareholder, the VW subsidiary is also involved in the financing round and is investing a double-digit million sum. “We are pleased that Rimac has gained new well-known investors and we are optimistic about the further development of this company,” said Lutz Meschke, Deputy Chairman of the Executive Board of Porsche AG.
Fresh money flows primarily into the supply business
In the second division called “Rimac Technology” Rimac has bundled the supply business. This division, which supplies parts such as batteries, electric axles and consumer electronics for other car manufacturers, should be strengthened with the fresh money, said Rimac. From 2024, some projects involving larger quantities will be up and running. The main focus here is on batteries, which are used in particular in top models.
Rimac is currently building a new headquarters just outside the Croatian capital. In the current year alone, 700 employees are to be hired; more than 1,500 people are currently employed by the sports car manufacturer, which in addition to the Croatia location also has branches in France, Berlin and Great Britain. The company is looking at other locations, Rimac said. Italy could be an option.
Importantly, the money will also help Rimac remain independent of major automakers, the CEO said. “It’s very good for us to have Porsche and Hyundai as shareholders, but we don’t want to be completely dependent on them.”