The funds will be used to scale electric boat production, grow its US market presence and reach profitability.
Electric boat manufacturer X Shore announced it has secured its latest round of investment funding, adding another SEK 300 million ($29M) to its piggy bank. The fresh funds will be used to scale production of its first two electric boat models and eventually reach profitability. Additionally, X Shore is further investing in US market operations where its seeing the biggest appetite for its zero-emission vessels. The announcement comes around a year after raising €45.5M in an oversubscribed funding round.
For those not yet aware of X Shore, it is a Swedish climate technology company and electric boat manufacturer whose original trademark dates back to 1996, although it didn’t truly start bringing zero-emission boats to life until 2016. That began with the Eelex 8000, which has received a number of awards and helped the boatbuilder garner additional funding for research and development.
That funding helped get the X Shore 1 built before it was officially unveiled in the fall of 2022. We recently saw both the company’s electric boats up close in the US at the Miami International Boat Show and were quite impressed.
With two models in its current zero-emission maritime lineup, X Shore looks to reach profitability soon and has secured more funds to make it happen.
X Shore to further invest in US market operations
According to the boatbuilder, the SEK 300 million in funding was led by SEB Investment Management AB, in additional to several new and existing shareholders in the company.
SEB Investment Management AB, which operates as an investment management firm, is a wholly owned subsidiary of Skandinaviska Enskilda Banken AB with headquarters in Stockholm.
SEB Investment Management says, “SEB investment Management is committed to helping fund the transition to net zero and we are very pleased to be able to support X Shore in their vital work of decarbonising the global boating industry.”
With the latest funding round now complete, the boatbuilder says it can more easily navigate toward the green on its financial reports, relaying that it is projected to reach EBITDA-profitability sometime in 2024. X Shore CEO Jenny Keisu commented on the investment, which should also lead to more sales in the US:
"The X Shore mission is a crucial one – to lead the transition to electric vessels, in the process of decarbonizing an industry which must transition to net zero in our lifetime. We are at a critical time for the planet and companies like X Shore are all-important in helping heavy polluting industries achieve net zero. We are grateful for the support of the investment community, and I am excited for the future. We will be working closely with SEB Investment Management and all other stakeholders on our next chapter as the industry leader"
In addition to scaling electric boat production to meet growing demand, X Shore states the proceeds will be used to invest in North American market operations, including the US which the company states accounted for a majority of its sales in 2022.
The Swedish boatbuilder has already been recognized as one of the most sustainable manufacturers in the world and will continue its voyage toward bringing zero-emission maritime vessels to the masses.