The car subscription startup Cluno has raised $28 million in Series B funding. In addition to US investor Valar Ventures, existing investors Acton Capital Partners and Atlantic Labs are also participating.
After the Munich startup Cluno raised over seven million euros in its Series A financing in April 2018, The startup is now increasing its capital again. The startup received a total of $28 million in its Series B financing round. The round was led by Valar Ventures, Peter Thiel's New York-based VC firm. The existing investors Acton Capital Partners and Atlantic Labs also participated in the current round.
New capital to conquer the European market
Cluno plans to use the fresh capital to further expand and extend its technological lead. The company offers a digital car subscription.
Nico Polleti, Co-Founder and CEO of Cluno, explains his approach:
"Our mission is to create a compelling end-to-end experience for users and offer their own car as an all-round service. To make this possible, we are consistently digitizing all processes along the value chain."
In just a few minutes, you can book your own car via the app for a monthly all-inclusive package price, which will then be delivered to your desired location. The minimum rental term and notice period are only three to six months per vehicle. The Munich-based startup currently offers nearly 50 models from nine different brands across Germany, including BMW, VW, Audi, and Ford. The product range extends from small cars to SUVs.
Car subscription as a fast-growing market
Andrew McCormack, General Partner of Valar Ventures, praises the startup’s customer focus and comments:
"It's remarkable that Cluno has radically simplified the complex processes involved in car financing and leasing, completely mapping them out in an app. Users receive a real-time response as part of the automated credit check. [...] Our investment is intended to accelerate Cluno's growth to become the European market leader. Both the potential and the market are enormous."
According to a study by Frost & Sullivan in a high-growth market. Car subscription models are forecast to account for approximately 101,000,000 of all car sales by 2025.
