Zparq’s Electric Drivetrains Steer Marine Transport Toward Zero Emissions With €5.5 Million

The funding combines an EIC grant with equity investment from existing backers InnoEnergy, Santander Climate Fund, and Almi Invest Greentech.

“This milestone underscores both the technological strength of our platform and the momentum for change across the marine industry,” says Jonas Genchel CEO and Co-founder of Zparq. “With increasing regulatory pressure and clear customer demand for sustainable propulsion the time for electrification is now. Our Z10 platform proves that electric propulsion can be clean, safe, and fully competitive, not only in performance, but also in cost and reliability.”

The €5.5 million funding for Zparq’s Z10 marine drivetrain aligns with a broader 2025 trend of European startups pushing electrified propulsion and clean mobility solutions.

Notable examples include Finland’s Donut Lab which raised €25 million to develop a modular EV platform for land, sea and air and the Netherlands’ Deftpower which secured €12.5 million to expand its AI driven EV charging network across Europe.

Although Zparq is the only Swedish company in this group, Nordic activity especially Donut Lab’s Finnish raise highlights strong regional momentum in sustainable propulsion and deep-tech innovation.

The mix of EIC grant and equity financing also underscores the continuing importance of public funding in scaling Europe’s clean transport technologies.

“Zparq is a prime example of how European DeepTech innovation can transform entire industries,” says Lowina Lundström, CEO of InnoEnergy Scandinavia. “Their drivetrain platform addresses one of the most challenging sectors to decarbonise – marine propulsion – by combining technical excellence with industrial scalability. At InnoEnergy, we are proud to support Zparq in bringing this breakthrough to market, thereby accelerating Europe’s leadership in clean and competitive marine technology.”

Founded in 2020, Zparq develops compact and scalable direct-drive systems for propeller-driven watercraft. The company provides electric motors and complete powertrains for leisure and commercial vessels, delivering quiet, efficient, and low-maintenance propulsion with a reduced environmental impact.

Zparq is among just 40 European startups chosen for the EIC Accelerator from over 1,000 applicants, with nearly €230 million in blended financing awarded to the selected companies.

“We are delighted and proud to have been selected for the EIC Accelerator in such tough competition. It is a strong validation that our technology comes at the right time and has the potential to make a real difference ” adds Genchel. “This recognition and funding will allow us to scale faster, build new partnerships, and drive the systemic change needed to decarbonize waterways.”

Zparq notes that the marine industry has historically depended on internal combustion engines but rising environmental concerns, higher maintenance costs, and stricter regulations are driving electrification. The company’s ultra-compact, scalable and fully integrated Z10 electric drivetrain tackles these challenges.

Designed for leisure, commercial, and rescue vessels, the Z10 platform features advanced battery management, integrated safety systems, and theft-prevention technology, setting new benchmarks for sustainable marine mobility.

About Zparq

Zparq AB is redefining marine electric propulsion with a compact, scalable direct-drive system for propeller-driven vessels. Its innovative motor design optimized for submersible use, features a patented passive cooling system making it up to 10 times smaller than conventional motors while delivering equivalent power and efficiency.