What will Qelo do with the three million euros it is raising through bonds?

Will Qelo succeed in raising three million euros in capital through its bonds that citizens can purchase over the next month? The answer to that question will be known in a month, when the interest expression period for them ends. However, what does Qelo intend to do with that money and why are they seeking exactly that amount in the market?

The team from enasolAuto, the owner of the Qelo EV Charging brand, intends to use this money to build new charging stations at 18 locations with a total of 60 connections and upgrade existing stations with ultra-fast chargers. As stated in their presentation, the charging stations are being built in attractive urban locations and in shopping center parking lots in cities and tourist centers in Istria and Dalmatia, in Zagreb and its surroundings, Međimurje, and Slavonia, with average construction costs for a connection point being 50 thousand. Within three years, according to their presentation, revenues are expected to significantly exceed these investments, as they anticipate a cumulative income of over one hundred thousand euros per installed connection (of which there are multiple at each station) by the bond’s maturity.

– Construction of charging stations is underway at the entrance to the Učka Tunnel and the Mirna rest area in Istria, while new stations will be located at already contracted strategic locations such as shopping centers and selected urban locations in popular tourist destinations along the coast, Zagreb, Međimurje, and Slavonia – stated Milan Horvat, an advisor assisting enasolAuto in finding investors for Qelo.

In his LinkedIn post, Horvat emphasized that the slower growth of electric vehicle purchases is being compensated by targeting foreign visitors to Croatia, especially during the tourist season. This was also pointed out by the founders themselves – Predrag Šeatović, Tomislav Kajdi, and Tomislav Ivanetić – during a media event marking the bond launch. Qelo’s secret lies in ultra-fast charging and the interoperability of their card with European charging stations, which allows foreigners access to over 800 chargers in the EU. This is sufficient for a tourist trip to Croatia without much thought, as confirmed by data showing last year’s revenue growth of nearly five times, a threefold increase in the number of charges, and nearly three-quarters of revenue coming from charging on other networks.

Of course, their own network provides revenue stability and greater profitability, which is why they wish to expand it. After this round of capital raising, they expect a recapitalization and investment from institutional investors, which they plan to use to establish a network with over 100 connections at more than 30 locations, including highways, shopping centers, and tourist centers. And why are they seeking exactly three million euros in fresh capital through their bonds?

– They would not be able to spend more – said enasolAuto board member Tomislav Kajdi during the bond presentation.

Namely, from their own experience, enasolAuto assessed that they would not be able to develop more charging stations and locations due to the slowness of administration and accompanying energy support. Thus, they remained at this amount and expansion plan. Will they succeed in raising that capital? The target amount is not unattainable, and it is distributed across a number of bonds suitable for investment by a wide range of interested parties. However, there are possibilities to lower the threshold below one thousand euros. Specifically, FIMA, led by Milan Horvat, has prepared models for joint purchases for those for whom the one thousand euro threshold is too high, thereby opening the door to acquire less than one whole bond.