Munich-based digital car subscription startup Cluno provides users with an opportunity to drive own cars without buying them. And now, the German startup has just secured €25 million in series B financing round led by Peter Thiel’s Valar Ventures, the U.S.-based venture capital firm.
The other participants involved in the round include existing investors Acton Capital Partners and Atlantic Labs bringing the total funding of the startup to €32 million.
Financer’s take on the investment
Andrew McCormack, General Partner of Valar Ventures elucidated, “Cluno has created an appealing solution for mobility that consumers love. They have simplified the complex process of car financing and made it available in a straightforward way through their app. Through Cluno’s automated credit check, users can also receive feedback in real time.”
Andrew further added, “The success of Netflix and Spotify has confirmed the trend towards usage over ownership. The same concept will be standard in mobility and car ownership; the timing for Cluno’s car subscription service is just right. Our investment will support Cluno as the company accelerates its growth towards being the European market leader. The potential is enormous.”
Cluno – flexible mobility solution
Cluno’s users can book a car in the app or online for a monthly subscription plan and get it delivered to their scheduled time and location. The monthly fee includes maintenance, insurance, registrations and taxations of the vehicles.
Cluno users are not bound to any long-term commitment and can change cars or terminate service with a notice period of three months. Notably, the minimum subscription period is six months.
A wide range of cars to choose
Cluno showcases around 50 latest models from nine different car makers, including BMW, VW, Audi and Ford on its platform. From small cars to SUVs, hybrid or electric vehicles, Cluno caters all varieties to users.
Plans for 2019
Founded in 2017, the German startup has a strong team of 55 members and is planning to recruit 30 more people in technical, finance and marketing role by the end of 2019.
Cluno will utilise the present capital in further developing its technology and scale operations.
Nico Polleti, co-founder and CEO of Cluno expressed, “People don’t just want simple, quick and flexible access to mobility for a fair price, but more than ever, a contemporary, digital service with a compelling end-to-end experience. Cluno is dedicated to this mission and the digitalization of the entire car subscription process.”
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