XL Hybrids, Inc., developer of a low-cost hybrid electric powertrain designed specifically for class 1 to 4 commercial fleet vehicles, today announced that it has raised $3 million in a pre-Series C debt financing round from WindSail Capital Group.
The company will use these funds to cover working capital and other operating expenses as it accelerates sales and deliveries of its hybrid powertrain technology to Fortune 500 customers.
By raising corporate debt funding in a competitive round, XL Hybrids has demonstrated the confidence professional investors place in the business and in its continued sales acceleration to marquee customers, such as FedEx Express. Corporations continue to look for cost-effective solutions to reduce fuel bills and vehicle emissions, and XL Hybrids' powertrain technology is unique in the commercial fleet segment in not requiring any new infrastructure or relying on government subsidies to generate a compelling return on investment. XL Hybrids also anticipates raising a Series C equity round of financing in 2014.
"We see XL Hybrids as the emerging market leader in the race to make commercial vans and other medium duty vehicles more energy efficient - both saving money and cutting greenhouse gas emissions," said WindSail Capital Group Managing Director Michael Rand. "XL Hybrids is a great fit for WindSail. The company has strong leadership, a sound execution plan and a tremendous value proposition."
"Raising debt from WindSail enables XL Hybrids to increase production and sales of hybrid systems to thousands of units next year," said Tod Hynes, president of XL Hybrids. "This financing also helps us invest more in our product line and sales team, and continue to scale our business."
XL Hybrids previously closed $6 million in equity financing in a Series B round in early 2013. The company used that funding to develop the third-generation XL3 inline hybrid electric powertrain technology, to grow sales and to establish production capacity of more than 1,000 units per year. The company also announced that it recently began exporting to Canadian customers.
