Press release -
Candela Closes $40M Funding Round to Meet Demand For Electric Foiling Ferries
Candela Holds Final Close on $40m Series C Funding to Decarbonize Waterborne Transport
- Announcing an additional $14M raised in its Series C round, Candela has secured over $40 million in funding in 2024. The investment will enable Candela to meet the soaring demand for its groundbreaking zero-emission vessels.
- Candela has reached a milestone with the sale of its first Candela P-12 to the United States, where it will operate on Lake Tahoe. The company is well-positioned to transform the $15 billion market for electric ferries.
Stockholm, Sweden, 21 November, 2024
"This is the dawn of a zero-emission revival in waterborne transportation," says Gustav Hasselskog, Candela’s founder and CEO.
Globally, waterborne transport accounts for 3% of greenhouse gas emissions—a challenge Candela aims to tackle with its revolutionary electric hydrofoil technology. This innovation enables operators to switch to sustainable electric vessels, providing shorter travel times, more frequent departures, enhanced comfort, and significantly reduced operational costs compared to traditional ships.
The new $14 million (€13 million) investment is led by by SEB Private Equity, a global Private Equity investor, with participation of existing investors EQT Ventures and KanDela AB. This brings Candela’s total funding for 2024 to $40 million (or €37 million), after a previous round this year.
"This investment, made during a challenging time for many companies, is a testament to Candela’s technology and its unique ability to solve the pressing issue of decarbonizing transport," adds Hasselskog.
”We are thrilled to partner with the Candela team," says Anders Jöngard, Investment Director at SEB Private Equity. "We are impressed by Candela’s journey bringing cutting-edge innovation to serial production, including the launch of the world’s first electric hydrofoil ferry. As pioneers in emission-free transportation, Candela is setting new standards. We believe the transition to a fossil-free economy will unlock significant growth opportunities, and we are committed to supporting Candela’s expansion for a more sustainable future.”
The funding comes as Candela’s order book continues to grow rapidly. Recently, the company introduced the world’s first foiling electric ferry, the Candela P-12, into Stockholm’s public transport system. Here, the P-12 has already demonstrated its ability to halve commute times and showcase the potential to eliminate fossil fuel reliance in Stockholm city's transport, where most emissions come from commuter vessels.
With a service speed of 25 knots, the P-12 is not only the fastest electric vessel in operation globally but also outpaces Stockholm’s diesel fleet. Thanks to a speed exemption due to its low wake signature, the P-12 can travel through the city center at high speed, linking suburbs with the capital.
Candela’s key innovation lies in its C-Foil, a computer-guided hydrofoil system with underwater wings that lift the hull above the water, reducing energy consumption by 80% compared to other high-speed vessels. This enables the rare combination of high speed and long electric range.
Reinforcing its leadership in maritime electrification, Candela recently marked the production of its 100th electric leisure hydrofoil vessel. The company is now aggressively targeting the rapidly expanding global market for electric waterborne transport, which is projected to reach $15.32 billion USD by 2032.
Candela has also secured a contract to bring high-speed electric hydrofoil transport to Lake Tahoe, marking the U.S. debut of its technology. Additionally, the company has closed a fleet deal to electrify water transport for Saudi Arabia’s NEOM project and announced partnerships in Berlin and New Zealand, with more customers to be revealed soon.
The funds will be used to scale up P-12 production at Candela’s Stockholm facility. The P-12’s design, optimized for cost-effective road transport, enables worldwide shipping. Additional production capabilities are also under consideration.
"In every sector, we must move quickly to decarbonize. Our technology offers a strong economic incentive to switch to zero-emission fleets, while unlocking the potential for waterways to ease road congestion. This investment comes at a critical time for the planet," Hasselskog concludes.
“Candela is pioneering the shift to fossil-free transportation on water, just as we’ve seen rapid progress on land. With their cutting-edge hydrofoil technology, the transition to clean, efficient waterborne travel is finally within reach,” says Lars Jörnow, Partner at EQT Ventures.
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Stockholm-based Candela Technology AB is the world leader in hydrofoiling electric vessels. The company was founded in 2014 by engineer and business leader Gustav Hasselskog with the mission to accelerate the world's transition to fossil fuel-free lakes and oceans by developing electric vessels that outperform those powered by fossil fuels.
Candela's watercraft have wings (hydrofoils) that lift the hull above the water and reduce friction, using 80% less energy than conventional ships at high speed. This technology allows for long-range water travel solely on battery power, a first in the industry. Candela's hydrofoils also enable operators to transition to sustainable fleets by providing up to 50% lower operational costs.
At the heart of Candela's hydrofoil tech stack is the Flight controller, which automatically stabilizes the vessel during flight by regulating the foils, using sensors that gauge wave height and wind speed, among other factors. Even in rough weather, passengers experience 90% less g-forces than they would on a traditional boat. All Candela vessels are fully connected and receive over-the-air updates.
After five years of research and development, Candela began producing the world's first electric hydrofoil leisure boat in 2019, the Candela C-7 open "roadster of the seas". This was followed in 2022 by the high-volume market Candela C-8, which was delivered to the first customers in spring 2023. Over 150 C-8 units have been sold to date, and the vessel has been lauded as a "game changer" by Motorboat and Yachting magazine, winning numerous awards including the 2022 European Powerboat of the Year award for its superior seakeeping, long range, and high speed.
In 2023, Candela launched its first commercial vessel, the Candela P-12 Shuttle ferry. It is the fastest and longest-range electric ship ever built, with a top speed of 30 knots and a range of 40 nautical miles at 25 knots. It is also the most energy-efficient fast ship ever made in its size class. Substantial operational cost savings are expected. The first unit enters service in Stockholm's public transport system in 2024.
Candela is a technology company with headquarters in Stockholm, Sweden, employing over 200 engineers, technicians, and production staff. The company develops the entire tech stack, from the C-POD motor to the control system and carbon fiber hulls, in-house. Candela's two wholly-owned factories in Stockholm, Sweden, produce the Candela C-8 and P-12 vessels. The company also has leisure boat resellers in 12 countries and wholly-owned sales offices in San Francisco, USA, and Cannes, France.
