Private Equity: Monta Electrifies the Electric Vehicle Market
In a world increasingly focused on sustainable and environmentally friendly solutions, the Danish company MONTA has established itself as a leading software provider for the operation of electric vehicle charging stations. Our private equity fund, which focuses on decarbonisation solutions, is invested in MONTA alongside other investors.
MONTA offers charging station operators a comprehensive software platform to make electric vehicle charging more efficient and user-friendly. This promotes electromobility.
From our perspective, this is an investment with potential for Swisscanto's globally diversified private equity fund: Since March 2024, the fund has been invested in MONTA, providing institutional and professional investors with access to privately held companies developing decarbonisation solutions through direct investments in companies and funds.
An Ecosystem Around Electric Vehicles
The MONTA platform's primary customer base includes charging station operators and their users. These are companies, property managers, or utility companies that want to offer their employees and customers a wide network of their own charging stations as well as roaming on third-party networks – all under a unified billing system. MONTA enables, for example, the monitoring of charging status, management of access rights and various tariffs, and optimisation of charging times.
Dynamic load management is central to ensuring optimal utilisation of limited feed-in capacity. This enhances the reliability of the charging infrastructure, reduces operating costs, and increases grid stability.
At the same time, electric vehicle users can find available charging points nearby via an app. They can also make reservations and start and monitor the charging process. The app also offers transparent billing and payment processing. Furthermore, the software platform is equipped with digital interfaces, known as Application Programming Interfaces (APIs). This allows companies to integrate the MONTA software with existing systems – a particular advantage for fleet operators.
Growth Potential of Electromobility
These unique selling points could pay off, as the market for electromobility is growing rapidly worldwide. According to a study by BloombergNEF1, it is expected that by 2040, around three out of four passenger cars sold will be electric vehicles. This growth is driven by various factors, including government incentives, stricter emission regulations, increasing consumer environmental awareness, and the ever-improving range and advantages of electric vehicles. The increasing prevalence of electric vehicles and the expansion of charging infrastructure create strong demand for innovative management software solutions.
The regions with the highest growth in electric vehicles in the coming years are primarily Europe and China. The USA, however, follows not as a leader but as a follower. While MONTA is strongly represented in the European market, the company has also established a foothold in the USA over the past year. MONTA records one million charges per month in 32 countries and employs around 290 people.
MONTA in the Leading Group
The market for operator software follows the strategy of "land grab," where companies intensely compete to quickly secure market share among the largest operators and expand their presence. Similar to how SAP successfully implemented this with Enterprise Resource Planning (ERP) software.
MONTA is one of the fastest-growing and soon-to-be largest providers worldwide. With its exclusive focus on software, MONTA is more scalable than providers that combine their software with charging infrastructure. This advantage was particularly noted by our Investment & Advisory Committee during the sector analysis and was also a key reason for the investment in MONTA.
1 Electric Vehicle Outlook 2024 / EVO Report 2024 | BloombergNEF | Bloomberg Finance LP
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