Supercar startup Rimac bags €500 million investment, with Porsche strengthening ties
06 June 2022
Croatian supercar maker Rimac, known for its Nevera electric sports vehicle, has raised €500 million in a new funding round that now values the company at €2 billion. The company will use the investment to expand its production facilities.
While Rimac’s roots lie in the small-scale production of high-end electric sports cars, the company’s expertise goes beyond building in-house hypercars. Its subsidiary Rimac Technology manufactures high-performance electrified-vehicle components, including batteries and e-axles, which are destined for carmakers across the world.
The fresh funding will help Rimac expand its engineering and manufacturing capabilities to serve its automotive clients and raise volumes in its technology business. Rimac Technology has forged several partnerships, including with Porsche, Hyundai, Automobili Pininfarina, Koenigsegg, and Aston Martin.
The financing round was led by Japanese conglomerate SoftBank, as well as Goldman Sachs Asset Management. Existing shareholder Porsche was also part of the investment, strengthening its ties with Rimac, while founder and CEO Mate Rimac – often referred to as Croatia’s answer to Elon Musk – remains the largest shareholder of the company.
Porsche, which was one of the first car manufacturers to back Rimac, did not disclose the amount it invested, except to say it spent an eight-figure sum. Following the transaction, the German carmaker will continue to hold around 20% of Rimac Group.
‘With new investors on board, Rimac is further expanding its position in electromobility and thus becoming an even stronger partner for Porsche,’ said Lutz Meschke, deputy chairman of Porsche’s executive board. ‘The close cooperation creates added value on both sides in terms of technology and innovative strength.’
Ambitious growth plans
Rimac began in 2009 as a one-person garage start-up. The company became a desirable brand for traditional car manufacturers, looking to the startup to help build their own electric supercars. It is now an established EV technology partner to global legacy carmakers, supporting their transition to electrification.
The company grabbed headlines last year when it took a controlling interest in Bugatti, the exclusive French carmaker that had been part of the Volkswagen (VW) Group. The merger of Rimac’s hypercar division with Bugatti Automobiles was completed in November 2021, with the companies now operating under the Bugatti Rimac brand.
The Croatian startup has bold ambitions and plans to develop a range of products. The new Rimac Campus will be able to produce tens of thousands of components such as hybrid-battery systems and full-rolling chassis.
‘Rimac has ambitious growth plans in the next few years,’ said Mate Rimac. ‘As we look to rapidly scale the group, establish new manufacturing processes to meet global automotive demand, recruit 700 talented team members in 2022, open new offices in several locations across Europe and expand our new production facilities at the Campus and beyond, the backing of our expert investors will be an invaluable guide through this uncharted territory.’
The campus will also be the headquarters of Bugatti Rimac and become the manufacturing site for the Nevera hypercar, which has been described as the world’s fastest-accelerating production car. Investors are hopeful that Rimac will continue to push the limits of battery and electric-powertrain performance.