Candela is flying high — and across the Atlantic.
The Swedish startup has secured $14mn, marking the close of its Series C round at a cosy $40mn. This puts its total funding at just shy of $90mn.
Candela has also sold its first P-12 ferry in the US, amid burgeoning demand for what is the world's fastest and longest-range electric passenger vessel.
FlyTahoe, the company that will operate the service, will use the P-12 to shuttle tourists and locals across Lake Tahoe. This massive freshwater lake straddles the border of California and Nevada and is best known for its clear blue waters and nearby world-class ski resorts.
Candela's ferry will run a north-south route across the lake at 25 knots (30 mph), halving travel times from an hour by car to just 30 minutes — minus the emissions.
“It's ironic that while millions, myself included, drive around Lake Tahoe to admire its beauty, the road sediment we generate contributes to the largest threat to the lake's famous cobalt blue clarity,” Ryan Meinzer, founder and CEO of FlyTahoe.
Computer-controlled hydrofoils lift the P-12 above water, reducing drag and cutting energy use by 80% compared to regular boats. This also provides a smooth, silent ride unaffected by waves and winds.
Attracting over 15 million visitors annually, Lake Tahoe suffers from road congestion, worsened in winter by heavy snow and road closures. However, since the lake never freezes over, the P-12 can operate year-round, providing a quicker, cleaner alternative to driving.
Last month, Stockholm became the first city to adopt Candela's ferry as part of its public transport system. The P-12 runs a 15km route from the suburb of Ekerö into the City centre, cutting a 55-minute commute in half.
Candela estimates 120 of its shuttles could replace Stockholm's entire 35-strong fleet of diesel ferries. That's a big investment, but CEO Gustav Hasselskog is bullish on the returns.
“Unlike a lot of green technologies, the cost is lower, it's cheaper to run, and cheaper to maintain,” he told TNW when we visited the company's headquarters earlier this year.
Powered by a fresh batch of funding, Candela's is rushing to fulfil orders from New Zealand, Berlin, Saudi Arabia and now the US, as it prepares for its biggest phase of growth yet.
“Our technology offers a strong economic incentive to switch to zero-emission fleets while unlocking the potential for waterways to ease road congestion and enable multi-modal urban travel. This investment comes at a critical time for the planet,” said Hasselskog in a press release.
SEB Private Equity, a global private equity investor, led the funding round, with participation from existing investors EQT Ventures and KanDela AB.
Update (18:24AM CET, November, 2024): This article previously mentioned that the P-12 costs $1.7mn each. This figure is no longer accurate.