Octopus Electric Vehicles has secured £150m of funding from Pollen Street Capital to drive expansion of its electric vehicle salary sacrifice scheme.

The funds will primarily finance Octopus’ flagship EV salary sacrifice offer, which now has more than 3,000 companies on board

The business, part of the Octopus Energy Group, launched its sal-sac offer in 2021, helping drivers to save 30-40% off the cost of a brand-new electric car.

Its scheme, which bundles the car, charger and discounted energy tariff into one combined product, is already used by 3,000 companies, including McLaren, Nando’s and Zoopla.

The new funding will help expand its reach further and brings the total funding raised for the Octopus EV leasing arm to more than £650m. The company has also made the move across the pond, with the launch of Octopus Electric Vehicles in the US.

Fiona Howarth, CEO of Octopus Electric Vehicles, commented: “Drivers are increasingly seeing the benefits of switching out old gas guzzlers for electric cars. They are great to drive, better for the planet and can save over £1,000 a year in fuel. With demand soaring, we need manufacturers to continue to increase volumes.

“With this demand, the UK is ever more attractive for EV charging investment and a destination for new electric car brands. With an amazing heritage in automotive here in the UK, we’re proud to be able to create new jobs in today’s upgraded, greener car market. And as Pollen Street’s commitment shows, leadership from the finance sector can make a real difference.”

Pollen Street has a strong track record in providing financing that delivers a positive impact, particularly in energy transition. It’s completed four transactions over the last 18 months, funding the expansion of electric vehicle fleets encouraging the switch to greener transport.

Matthew Potter, partner at Pollen Street Capital, said: “We are excited to partner with Octopus Electric Vehicles to support the expansion of their salary sacrifice scheme. Octopus are an innovative business which has gone from strength to strength and we are delighted to support their next phase of growth.”