European fleet electrification is accelerating, but affordability remains a bottleneck for smaller businesses. In this context, Brussels-based LIZY has raised €10 million in equity and €65 million in debt financing to scale its second-hand electric vehicle (EV) leasing model across Belgium, France, and the Netherlands. The move highlights a critical shift in the leasing market: replacing the “one and done” model with a circular approach that extracts more value from vehicles already produced.
The economics are clear. Traditional leasing has been predicated on new car production, with each contract tied to a fresh vehicle rolling off the line. For internal combustion engines, wear and tear often limited vehicles to a single leasing cycle. EVs, however, invert this dynamic. Battery-electric cars are mechanically simpler, requiring less maintenance and offering longer operational lifespans. This enables not just a second but potentially a third lease cycle — a model LIZY has championed since its founding in 2019.
Industry data underscores the environmental case for this shift. Studies consistently show that the bulk of a battery-electric vehicle’s lifetime CO₂ footprint comes from its production phase. Extending the use phase, therefore, dilutes production emissions over more years, reducing the average carbon cost per kilometer. LIZY claims its circular leasing approach directly leverages this effect, offering lower lifecycle emissions than both new EV leasing and traditional combustion models.
From a demand perspective, electrification is increasingly visible in LIZY’s portfolio. As of 2025, 84% of its contracts are for EVs, a strikingly higher ratio than the European Union average, where EVs represented around 23% of new passenger car sales in 2024, according to the European Automobile Manufacturers’ Association (ACEA). This suggests that LIZY is capturing a market segment underserved by both mainstream automakers and conventional leasing firms: small and medium-sized enterprises (SMEs) seeking cost-effective electrification.
The financing round reflects investor confidence in scaling this model. Backers include D’Ieteren, the Belgian automotive services group; Alychlo, Marc Coucke’s investment vehicle; and NewAlpha Asset Management. Alychlo’s founder positioned LIZY’s expansion as both a sustainability play and a growth strategy aligned with EU fleet decarbonization targets. Yet, while investor enthusiasm is strong, the challenge lies in balancing rapid expansion with the complexities of second-hand EV supply chains — from sourcing reliable vehicles to managing battery health and residual value uncertainty.
France, where LIZY’s sales are reportedly running at 3.5 times the pace of 2024, illustrates both the opportunity and the challenge. The French government has pushed EV adoption aggressively through subsidies and leasing incentives such as the €100-per-month “social leasing” program. However, these initiatives risk overheating demand at the new-car level, leaving the second-hand market struggling to catch up in terms of volume. For LIZY, securing sufficient feedstock of used EVs could become a strategic choke point as it scales.
Still, the capital injection provides a platform to expand internationally and refine the model at scale. Unlike other fleet electrification strategies focused on subsidized new EV sales, second-hand leasing directly addresses affordability for SMEs without amplifying production emissions. In effect, LIZY’s proposition combines cost efficiency with circular economy logic — extending vehicle lifecycles while broadening EV access.
Whether this approach can be scaled across Europe depends on two interlinked factors: the pace at which the first wave of EVs enters the secondary market, and the ability of leasing companies to de-risk battery longevity for customers. With battery degradation curves becoming more predictable and EV penetration climbing, the underlying conditions appear increasingly favorable. LIZY’s expansion will test whether circular leasing can transition from a niche to a mainstream mobility strategy.
