We talk to the founder of ECOFACTOR

Today we have the opportunity to talk to the founder of ECOFACTOR and get answers to numerous questions. We will find out when the company was founded, what it does, what trends prevail in its activities, where its development is directed and how we can invest together with ECOFACTOR This interview will be useful for those who use electric cars, as well as for those who are considering investing in charging stations.

I invite you to watch the interview on Youtube or read the text format.

My name is Alexey, and today I will be asking questions!

Let's start with the first one: How did you get started? How long has your company been around? Are you primarily a manufacturer of charging stations, or are you primarily a billing company? Or is it a combination of both?

We are the company "ECOFACTOR"which is fundamentally engaged in electric mobility and building an ecosystem. Our story began in 2014 with the task of introducing electric vehicles to the commercial sector, in particular, taxis. However, having understood the current problems of charging infrastructure, we started selling charging stations in 2016. Since 2018, our company has also been actively developing software in the form of SaaS.

The history of our company is based on three main areas:

1. The company specialises in the sale and service of electric vehicles and promotes the development of this sector.
2. The company that produces charging stationsThe company acts as an independent legal entity.
3. A company that develops SaaS-solutions for operators to effectively manage their business.

These companies can cooperate in different configurations, providing flexibility in their interaction with us. For example, the company SaaS is hardware-independent, and equipment can be connected according to established standards.

Our charging stations can operate on our own platform or on others that support the OCPP standard. Many of our partners choose to purchase both hardware and software from us, which provides clarity and convenience in cooperation

Now can you tell us where you are more present and where you are developing? Is it Europe, Asia or America? In which countries is EKOFACTOR represented as a billing system, and where does the company sell its stations as a manufacturer? 

Our largest and closest market is Ukraine, where we started our journey as operators by installing our own charging stations for electric cars. Today, we hold leading positions in Ukraine, Moldova, and Uzbekistan. In addition, we are present in such European countries as Bulgaria, Romania, Austria, Poland, the Czech Republic, Germany, France, Spain, and the UK. Currently, our strategic focus is on development in the UK, where we have been operating for three years and have successfully won several tenders. We are also starting to be active in the Turkish market, focusing our efforts on the Black Sea basin.

There are several major operators in your billing area, such as Ionity and Viwatt, who are installing powerful charging hubs.  

Our ECOFACTOR ecosystem brings together a significant number of operators, with a total of more than 350 people. Every individual or legal entity that purchases at least one charging station automatically becomes an operator. All of them have access to their own account, which provides all the necessary information, regardless of the number of stations installed, whether it is one or 1000.

Indeed, among the key and system operators, Ionity, which works with us, as well as Viwatt and other influential market players, stand out. They choose us as their technical partner because of our straightforwardness, cost-effectiveness and ability to help them grow their business.

Our ecosystem successfully handles a significant number of electric vehicle charging transactions, thanks to high-tech analytics. Even though our ports do not have the largest market share in Ukraine, we have already demonstrated that this does not prevent us from performing our duties effectively.

To summarise, we are characterised by being straightforward, cost-effective and helping to build partnerships to help them build their businesses. We strive to provide objective information and make sound economic decisions. We also carefully consider the interests of our partners, clearly defining the boundaries of our own area of responsibility.

How does cooperation work in this case? Let's imagine a few scenarios. First, there is a person who already has a location with a certain capacity, say, 100 kW or 200 kW, and expresses a desire to install an energy station. There are two possible options here: first, the person can financially ensure the installation of the plant (they have their own funds); second, they may own the location, but not be able to finance the purchase of the plant.
How does the whole process of implementing this project work in cooperation with you?

Very often we are approached with a request: "We already have a location. Please install a charging station."

We bring together partners who specialise in installing charging stations with those who already have a ready-made location. They reach a mutual understanding and coordinate with each other, and then install the charging station. In detailing the process, we provide lists of locations along with their capacity to our partners, and they submit their proposals to the owners of the locations. After that, we establish communication between the parties.

We can moderate this process, i.e. search for contractors, negotiate with the owners of the locations and resolve all issues. We charge an additional percentage for this. For an investor, this can be a passive investment.

What kind of station is relevant to install today? Should it be a powerful station of 120 kW and above, or can it be a 50 kW station? What kind of stations are generally recommended? 

All charging stations are interesting to install, even those with a low power output, such as 7 kW AC. It is important to consider the location - the greater the need for electric vehicles, the more interesting it is to install a charging station. For example, in cities where the infrastructure is developed, it may be beneficial to consider stations 120 kW and above. The most powerful charging station in our range is the 420 kW. 

As for investment attractiveness, today the plants with a capacity of 120 kW are considered the best option. Many electric vehicles cannot accept more than 120 kWand the difference in charging is not as significant as the cost of a large charging station. 

However, you can invest in different types of stations - from 7 kW to 420 kWdepending on location and need. AC charging stations can be interesting for offices, streets, and for charging during the night when the owner is sleeping. DC stationsIn particular, they are interesting for long-distance traffic. 

As for the top stations, there is no specific station that can be defined as a top station today. However, it is important to consider the infrastructure location. For example, a split system allows you to distribute more power between several machines, which can be an important factor when choosing a station. 

I know only one split system installed by FLASH, will we see a split system of your production? 

Yes, we are working on the installation of the first split systems in Ukraine from ECOFACTOR, and we plan to complete this project soon. Working on split systems is important to us, and I want to explain why we have taken on this task. 

Our company is an engineering company and our main focus is to provide technical solutions. We work with business partners to provide them with technical solutions to their business problems. We solve these problems by starting from the engineering aspects and using the most efficient and cost-effective schemes. 

When we look at the existing market in Ukraine and study the installed hubs, we understand that this approach is already becoming mentally acceptable to Ukrainian society. We are very grateful to companies like Flash, which built the first split system in Ukraine. This idea undoubtedly arose in response to the needs of market players, and it is an important step in the development of the fast charging network. 

We are happy to compete with other market players by introducing new solutions. We are also open to partnerships with Flash and other companies to build split systems together and contribute to the development of the fast charging network in Ukraine. 

Sergiy, I've heard about a cool campaign from Ecofactor, but I don't know the details. Could you please tell me about this campaign first-hand? What is its essence and what are the conditions? If this is a newly launched promotion, will it really be valid until the end of December? It would also be interesting to know for whom this offer is intended - for electric car owners, investors, or another target audience? 

That's a very good question. 

Yes, the way we look at it is that this is definitely the target audience of electric vehicle users who will use the infrastructure. But this particular promotion is intended for those who implement infrastructure - investors, operators, locations, and everyone who develops this segment. 

As for the campaign itself, we have launched a new line of charging stations called New Vision. This is a new range with a new design and a wide range of capacities. It includes both DC charging stations (AC), and for direct current (DC). We introduced this range to give operators more design and power options. 

In particular, to everyone who buys charging stations from the New VisionWe offer zero per cent billing for two years. This means that there is no cost for the billing service as we provide a SaaS platform. You just have to pay the bank's fee, which covers everything. This will enable operators to recoup their investment faster. 

What is the fundamental difference between the new stations? New Vision from the ones we see now? 

Well, there is no product that does not evolve. This is the next evolution, and this is the next version of our platform. We are adding not only functionality to this platform, but also a new design. So, our old line is called Industrial Design, and the new line that we want to introduce is distinguished by its beauty. It stands out for its design and is equipped with new equipment. 

We are aiming this line at something more attractive, which differs not only in design but also in equipment. It also has the potential to expand its functionality - in the future, we plan to introduce artificial intelligence and a voice assistant. This will be introduced in stages. 

It also features an advanced designer that allows operators to customise their design, add customised solutions and integrations such as artificial intelligence and voice assistant. This new platform opens up more possibilities for customisation, facilitating the individual wishes and needs of our operators. 

This gives operators who order stations more opportunities to customise and improve their image in the electric vehicle segment. 

Cool! What about the two years of billing? Will it be a significant saving for those who buy the stations?

This will be a significant saving, because everyone invests money to get it back. We make money on the service we have today. Charging stations New Vision will be slightly more expensive than those in the Industrial design. This is understandable, and to make it more economically feasible for operators to order and install the charging stations themselves from the new line, we are giving them a two-year head start to buy their investment sooner. 

We understand that this is important to them now, and we are ready to give it to them. This is our special offer. But to get it, you need to order a pre-ordered charging station. From 25 November to 31 December 2023. The charging station will be ready within the next three months. After our partner operator receives the charging station, they get this free billing for two years. This means that he does not pay a commission to us, only the bank's commission, which is approximately 2%. 

By the way, another important advantage of the new line is the transition to a transaction-based payment system. This means that all the money owed by the charging station owner to the operator is credited to his account the next day. This allows operators to become more financially free and operate with this money. We are moving away from balance sheets and moving to transactions in the new line. This change will be gradually implemented, and we hope to be fully transactional by mid-2024. 

This is a very cool thing, a revolution in electric vehicle payment, because it all started with balances. Now we're moving to payment by actual charging, which is one of the most convenient ways for users, especially in Europe, where this system is already in place.

Thank you, Sergey, for your answers, it was very interesting. I wish your company every success and prosperity in the future!

Thank you, Alexey, for your questions. If readers have any other questions, I will be happy to answer them in the comments. Feel free to ask, and I look forward to hearing your thoughts and questions!

Interview with Sergey Velchev