Arrival, an electric car startup founded in Great Britain by former deputy head of the Russian Ministry of Communications Denis Sverdlov, which is restructuring its business amid a set of problems, posted a $1 billion net loss in 2022, according to a company report.
Arrival’s fourth-quarter loss rose to nearly $600 million from $67 million in the same period in 2021, according to preliminary unaudited filings. The figure includes non-cash impairment charges and write-downs of more than $400 million. For all of 2022, the company estimates a loss of about $1 billion, compared with a loss of $1.3 million in 2021, which included a one-time non-cash charge of $1.2 billion related to the merger of Arrival and CIIG.
Adjusted negative EBITDA for the fourth quarter will be up to $172 million compared to $85 million in the same period of 2021. The company attributes the increase to about $70 million more in payroll and contractor costs and about $25 million more in component spending. Expected adjusted negative EBITDA for 2022 is about $380 million versus $203 million in 2021.
The company’s cash balance decreased by $126 million in the fourth quarter to $205 million by year-end. The money was used for working capital ($104 million), interest payments on loans and lease obligations ($11 million), capex expenses and other operating expenses.
Sverdlov (formerly head of operator Yota, and in 2012-2013, deputy minister of telecommunications of the Russian Federation. – Sverdlov (formerly the head of Yota, and Deputy Minister of Communications of the Russian Federation from 2012 to 2013) created Arrival in 2015. The startup raised funds from international investors and planned to roll out mass production of electric vehicles for large cities, proposing the concept of assembly in so-called “microfactories” as an alternative to conveyor car production.
In March 2021 Arrival went public on the Nasdaq exchange through a merger with SPAC. The company’s capitalization immediately after the IPO was valued at $13.6 billion, and Sverdlov, who controls 75% of Arrival through Kinetik Sarl, broke into the top 20 of Forbes Russia last spring. The magazine estimated his fortune as of April 2021 at $10.6 billion.
However, the full-scale war unleashed by Russia against Ukraine, as well as the adjustment of the company’s ambitious production plans, the rejection of the European market and the layoff of some employees led to the fact that the share price of Arrival by the end of November 2022 collapsed by almost 99% – from $22 when it was placed to just over $0.3. The price of the securities below $1 caused Arrival to receive a warning about possible delisting from Nasdaq back in early November. The exchange gave the startup six months, during which its shares must rise above $1 and stay there for at least 10 days in a row.
Amid the problems, Arrival announced plans to focus resources on developing US Van vans for the U.S. market. The company hopes to begin producing them in the U.S. city of Charlotte in 2024 “subject to raising additional capital.” “We will use $330 million in funds to achieve our U.S. goals and look to raise additional funds,” Sverdlov was quoted by Arrival’s press office as saying in a press release for its Q3 2022 reporting.
In early November, Arrival reported that the company may not have its first revenue until 2024, rather than 2023 as previously planned. The company reported a tenfold increase in net loss in Q3 (to $310.3 million) and a $330 million cash reserve, noting that the reserve would fund the business for the next 12 months.
Sverdlov stepped down as CEO of Arrival in late November 2022 to head the board of directors. By the end of January, Peter Cuneo, the company’s acting head, had already handed over the CEO position to Igor Torgov, the former head of telecom operator Skartel (Yota brand), who had previously worked with Sverdlov at Yota.
“After a detailed evaluation of Arrival and the electric car market over the past two months, the company’s management and board of directors have taken decisive action to make better use of current resources and optimize the business. These actions reaffirm our commitment to becoming a leader in innovative products and new, more efficient methods of producing vehicles, especially in the important U.S. commercial electric car market,” Arrival’s press office quoted Torgov as saying in a January announcement.
In the same announcement, the startup confirmed its intention to cut up to 800 people — about half of its staff — to optimize costs. “Combined with other real estate and third-party cost-cutting measures, the company expects to halve its current business spending, to about $30 million per quarter,” the press release said.
The electromobility department of ABB (Asea Brown Boveri Ltd, Sweden-Switzerland) has announced an investment in the Ukrainian startup Go To-U.
“This is the first equity round of the company’s investments, led by ABB EL Ventures and ABB Technology Ventures. The startup is also supported by the Techstars accelerator,” the companies said in a joint release.
The size of the investment has not been specified.
ABB indicates that this investment by its ABB EL Ventures and ABB Technology Ventures (ATV) divisions has expanded the strategic portfolio of ABB’s venture capital firms and its electromobility division, while Go To-U clarifies that it will remain a platform compatible with equipment from the leading manufacturers.
“The investment will contribute to the commercialization of GO TO-U software technology and further product development. The GO TO-U solution will be available worldwide,” the statement said.
Go To-U was founded in Lviv in 2016-2017, its software is aimed at owners of electric vehicles – the application is a map of charging stations with the ability to book and pay for services. The platform unites more than 300,000 charging stations in 47 countries of the world. In addition, the company provides services for the sale and installation of charging stations.
The startup took part in the European climate innovation voucher programs for the development of the client side of the back office for EUR50,000 and the ImpactConnected Cars acceleration program from Horizon2020 fund for EUR60,000. Earlier, in 2020, Go To-U received an investment of $ 100,000 from the accelerator Techstars, the company was valued at $ 3 million. The company’s headquarters are currently listed in Los Angeles.
ABB is an international company specializing in electrical engineering, power engineering and information technology, founded in 1988 after the merger of ASEA (Sweden) and Brown, Boveri & Cie (Switzerland), and is represented in more than 100 countries. Its manufacturing facilities are located in over 15 countries.
The supervisory board of the Ukrainian Startup Fund (USF), based on the results of 28 Pitch Day, has identified 10 more startups that will receive grants totaling $250,000, the fund’s press service said last week.
In total, teams of 13 projects participated in the pitching. Following the meeting of the Fund’s supervisory board, it was decided to finance seven of them at the pre-seed stage (they will receive a grant of $25,000): Agrotop UA (Kyiv) – a comprehensive expert and analytical information system for agribusiness management; Clasee (Kyiv) – a knowledge sharing platform for personalized learning; MySat UA (Kyiv) – a STEM building set and model of a real satellite, which can be built without special knowledge; Sugarrr (Kyiv) – a mobile application for analyzing the body of a person suffering from diabetes; LuLL world (Kyiv) – mobile, orthopedic and resonance therapeutic hammocks; Deputy (Kyiv) is a digital platform for automating the work of deputies, the tool for collecting, analyzing and understanding the problems of residents; Zeely (Kyiv) – a platform for free website creation and business promotion directly from your smartphone using artificial intelligence; Smart ION (Kyiv) – an ecosystem of smart modules for light control; SolidERP (Kharkiv) – a ERP system for modern service companies; Insolar-T (Kharkiv) – a SaaS platform for improving energy efficiency, the remote-EEaaS-based AI product.
The press service said that the projects are evaluated according to a number of criteria, namely: team, market, appropriateness of financing, idea and development strategy.
The Ukrainian Startup Fund is a government-financed fund created at the initiative of the Cabinet of Ministers. Its purpose is to provide financing to technology companies in the early stages of development (pre-seed and seed).
The supervisory board of Ukrainian Startup Fund (USF), based on the results of the 26th and 27th Pitch Days, has defined 13 more startups that will receive grants totaling $475,000, the fund’s press service has said.
Teams of 24 projects took part in the pitching. Following the meeting of the fund’s supervisory board, it was decided to finance seven of them at the pre-seed stage (they will receive a grant of $25,000):
Avocado AI. B2B SaaS (Kyiv) – uses mathematical models to predict the demand for dishes and form the best order of ingredients for the establishment;
MANNA (Kyiv) – an interactive media platform for creating author’s 3D animation content, streaming and social interaction in the VR environment;
Advin (Kyiv) – a system for controlling the availability of goods on the shelves of a food retail store;
Monor (Kyiv) – innovative glasses from a 3D printer with the possibility of customization and a unique system for attaching the temples;
Energy Absorbing Breakwater (Dnipro) – a completely autonomous device for converting the energy of sea waves into water desalination and electricity generation;
4comfortshoes (Kyiv) – an online shoe fitting service for retailers and buyers. Based on the photographs of the buyer’s feet, the service determines the parameters and size of the shoes;
Workee (Kyiv) is a comprehensive solution for running a private coaching business.
In addition, it was decided to finance five startups at the seed stage (they will receive a grant of $50,000):
Awesomic (Kyiv) – an online application that matches the company’s task with the best designer to complete it;
Copra (Odesa) – a Ukrainian developer of premium acoustic systems and amplifiers;
DreamApp (Kyiv) – an interpreter of dreams;
Onyx (Cherkasy) – patented contactless towel dryers;
Noplag (Kyiv) – a service for checking plagiarism and resources for academic writing;
Meteocontrol AI (Kyiv) – a platform for insurance of farmers based on satellite data and proprietary algorithms.
The press service recalled that during the pitching, projects are assessed according to a number of criteria – team, market, appropriateness of financing, idea and development strategy.
As reported, on average, the Ukrainian Startup Fund allocates funding for every 25th application.
Ukrainian Startup Fund is a state fund created on the initiative of the Cabinet of Ministers. Its purpose is to provide financing to technology companies in the early stages of development (pre-seed and seed).
The Supervisory Board of the Ukrainian Startup Fund (USF), based on the results of the 23rd and 24th Pitch Days, has identified another 13 startups that will receive grants totaling $425,000, the fund’s press service said on Thursday.
Teams of 24 projects took part in the pitching. Following the meeting of the fund’s supervisory board, it was decided to finance nine of them at the pre-seed stage (they will receive a grant of $25,000):
GeronCore – a living heart (Kyiv) – a new generation of cardio implants for children with congenital heart ailments;
AGRO BI (Kyiv) – Business intelligence platform for managing risks and increasing yields in agribusiness, providing information on plant growth and the presence of weeds based on high-precision aerial photography by drones and using its own neural networks;
Harmix (Kyiv) – an intelligent service that automatically selects music for video;
Erudito (Kharkiv) – a mobile application for teaching children school subjects in a playful manner;
Ademrius (Lviv) – a web platform for automating the work of medical institutions through the introduction of online appointments with a doctor and an electronic patient history;
Librarius (Kyiv) – a mobile application for the selection, purchase, rent and free reading of literature in electronic and audio formats;
Artera (Kyiv) – marker pen that can write or draw in any color;
Supplio (Kyiv) – integrates cosmetics suppliers with their customers, thus providing automated order management based on actual inventory;
AutoBI (Kyiv, Lviv) – a system for the automotive and related areas for setting up and optimizing fleet of vehicles management processes.
In addition, it was decided to finance four startups at the seed stage (they will receive a grant of $50,000):
Effa (Kyiv) – environmentally friendly disposable hygiene products made from 100% recyclable and renewable materials;
CareTech.Human (Kyiv) – an automated, non-invasive and affordable solution for daily health screening, early detection and monitoring of diabetes;
SmartReader (Rivne) – classes on speed reading and memory development for children 6-16 years old using a gamified online platform;
Fiway (Kharkiv) – Internet for transport, which works in any country in the world.
The press service recalled that during the pitching, projects are evaluated according to a number of criteria, namely: team, market, appropriateness of financing, idea and development strategy.
As reported, on average, the Ukrainian Startup Fund allocates funding for every 25th application.
Ukrainian Startup Fund is a state fund created at the initiative of the Cabinet of Ministers. Its purpose is to provide financing to technology companies in the early stages of development (pre-seed and seed).
The Sector X acceleration hub based on the Unit.City innovation park (Kyiv) has reported for the nine months of work with three acceleration areas – MedTech, Logistics and BeautyTech.
The press service of Sector X said that within the framework of acceleration tracks, the partners of the hub became Farmak pharmaceutical company, the Foxtrot group of companies (Kyiv) and the Ukrainian branch of the L’Oréal Ukraine cosmetics company.
As a result, while working with the accelerator startups, Farmak signed a cooperation agreement with two startups: Bicovery startup will receive $50,000 from the pharmaceutical group and another $30,000 from the angel investors of this company, and ComeBack Mobility startup will receive the first tranche of $100,000 from the group, $30,000 from the angels of Farmak, $40,000 from the French company Undisputed Paris SAS Frédéric Delfosse and $75,000 from Dmytro and Oksana Tomchuk, as well as the team will receive another $150,000 from Farmak after KPI is completed.
Bicovery is an ecosystem with web and mobile applications that helps a person with bipolar disorder, his relatives and doctors receive more complete information about the dynamics of the disease, warnings about potential manic or depressive episodes, measure the effectiveness of medications and procedures, reduce the cost and increase the consistency of treatment, aimed at improving the quality of life of the patient and his loved ones.
Using machine learning techniques and deterministic analysis, Bicovery monitors the mental and physical condition of a person with bipolar disorder in real time.
“Bicovery cuts the cost of treating a person with bipolar disorder by 10-30%, significantly reduces the number of visits to the doctor, reduces the need for outpatient treatment and speeds up the process of selecting effective drugs for a particular patient,” the report says.
ComeBack Mobility startup has developed smart attachments for crutches to control the load in the rehabilitation of diseases and injuries of the lower extremities.
