Finn has raised $110 million in equity to expand in the US and Europe and reach 30,000 subscribers by the end of the year, according to the company.
At a time when consumers are starting to shift away from traditional car ownership models, the funding brings Finn's valuation to more than $500 million. Car subscription platforms like Onto in the UK and imove in Norway are taking off as trends like usership over ownership, online shopping and EV usage rise.
Finn offers a selection of new cars for rent, which can be delivered to the customer's home, with no hidden fees or down payments. The price listed online includes insurance, maintenance and roadside assistance.
The car industry is the largest retail market in the world with the lowest e-commerce penetration rate of all markets, according to a spokesman for Finn.
Finn said that customers prefer to have access to items and services rather than owning them and would have to pay large amounts of cash in advance.
This is a trend that can be seen in other markets, such as the car retail industry, and it can also be seen with subscriptions.
Finn's minimum rental period is six months, but Onto rents vehicles on a monthly basis.
Finn is active in New Jersey, Pennsylvania, Massachusetts and Connecticut. The startup will use the equity portion of its funding to begin offering car subscriptions in California and Florida later this year, and to further expand throughout the country in 2023, according to a Finn spokesman. Finn will use the equity to grow its team in the U.S. and Germany and invest in its technology platform.
The front end of the website and mobile app will be further developed with features to enhance user experience, like a recommendation engine or a business portal for fleet managers. Finn hopes to improve the back end of its technology platform, which currently integrates more than 200 individual service providers.
Finn secured $720 million in asset-back debt in two separate rounds, money that the startup will use to purchase new vehicles and scale its fleet in existing and upcoming markets, according to the company.
Finn launched in the U.S. at the start of the 21st century, and its German fleet totaled 10,000 cars. Finn wouldn't say how many vehicles it has in the U.S., but it said it would add 5,000 cars this year and reach 30,000 by the end of the year.
Electric vehicles are in high demand as gas prices have also been affected by the war in Ukraine and supply chain crises are adding hurdles to buy any new vehicle.
Finn says that its share of fully electric fleet is growing quickly.
The company has established direct partnerships with leading car makers such as BMW, Volkswagen, GM and many more. Finn was able to navigate through the current supply crisis and offer its customers many cars with quick availability.
Finn's $110 million Series B round was led by Korelya Capital. The company said existing investors such as White Star Capital, HV Capital, Heartcore Capital, UVC Partners and Picus Capital also participated in the round.
Eco-conscious car subscription platform finn.auto raises $24.2M, with White Star and Zalando founders
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