Online marketplace for cars FlexClub secures R75m
Local online marketplace for cars FlexClub has raised $5 million (R75 million) in funding, significantly bolstering the $1.2 million (R18 million) it had already obtained in 2019.
Established in 2019, by co-founders Marlon Gallardo, Rudolf Vavruch and Tinashe Ruzane, FlexClub is an online marketplace that connects customers looking for access to long-term cars with its partners offering car subscriptions.
FlexClub’s rewards technology enhances the experience for its members, while reducing risk for its partner, says the company.
Through this technology, FlexClub is able to assess the risk profile of its members using several alternative data sources, and rewards its members for responsible vehicle usage.
Since it collaborated with Uber in Mexico and SA in 2019, helping their community of drivers subscribe for cars that become cheaper to purchase every month through rewards, the FlexClub model of all-inclusive car subscriptions has gained significant traction, says the company.
It adds that FlexClub’s car subscription marketplace is now being extended to retail consumers, who are also rewarded for safer driving while subscribing for the vehicle thanks to the company’s “Club Rewards Programme”.
According to FlexClub co-founder and CEO Ruzane, the latest fundraising round, led by Kindred Ventures, early backer of global technology businesses such as Uber, Postmates, Virgin Hyperloop and Coinbase, demonstrates the recognition by some of the world’s foremost venture investors of the potential for the FlexClub model and the confidence in the strength of its leadership team deeply experienced in mobility.
“With seasoned and highly-respected venture capital investors like Kindred Ventures, CRE Venture Capital and Endeavor getting behind our mission, we’re well-placed to usher in the future of how people get cars in markets like Mexico and South Africa,” Ruzane says.
“The support from prominent angel investors, like Matt Mullenweg (founder of WordPress), Federico Ranero (COO of KAVAK), Tariq Zaid (formerly of Shopify and Getaround) and Ron Pragides (formerly of Twitter and Salesforce), further validates the incredible global opportunity for our technology to reimagine commerce in the automotive industry.”