Latest equity close pushes FINN valuation above $500M
In March, FINN expanded its vehicle subscription offering to western Pennsylvania, Massachusetts, Connecticut and Washington D.C., following its initial U.S. rollout in December.
And now the company has additional financial resources to expand more.
Last week, FINN announced it has closed $110 million in Series B funding led by Korelya Capital along with Keen Venture Partners, Climb Ventures, Greentrail Capital and Waterfall Asset Management.
Existing investors such as White Star Capital, HV Capital, Heartcore Capital, UVC Partners, and Picus Capital also participated in the round, according to a news release.
FINN said it plans to use the funding to support its U.S. expansion and to strengthen its leadership position in Europe.
FINN also announced the opening of its U.S. headquarters in New York City. FINN is currently active in New Jersey, Pennsylvania, Massachusetts and Connecticut and will offer its vehicle subscriptions in California and Florida later this year.
The company said it is now valued at more than $500 million.
This financing comes on the heels of up to $200 million in asset-backed security (ABS) funding the company raised for U.S. market expansion from Waterfall Asset Management in March.
With its $520 million EU ABS raised from Credit Suisse and Waterfall Asset Management in December 2021, this new financing brings FINN’s total capital raised to $830 million within the past six months.
Besides supporting its growth, FINN said will use its funding to advance its core technology, and accelerate hiring across its global teams.
“We are honored to welcome such experienced investors on board. With this fundraising, we can bring our all-inclusive car subscriptions to the mass market,” FINN chief executive officer and co-founder Max-Josef Meier said in the news release. “What motivates us further, is that our flexible and easy to book car subscriptions serve as a catalyst for electric vehicles.
“One-third of our fleet is already fully electric, and the share is quickly growing. With the new investment, we bring not only car subscriptions, but also electric vehicles to a large audience,” Meier continued.
Additionally, FINN announced that former French Minister of Digital Economy and Culture, Fleur Pellerin, has joined its board of directors.
Pellerin is the CEO and founder of Korelya Capital and brings to FINN her extensive experience in scaling fast-growing technology companies, vast financial network and significant experience in the automotive industry.
“I was deeply impressed by FINN’s subscription model, as the car industry has yet to be transformed by the e-commerce revolution and subscription economy to become more sustainable. FINN’s positioning to build the global category leader for car subscriptions further intrigued me,” Pellerin said.
“What we as Korelya also liked about FINN was the depth and quality of its team. As Korelya consistently seeks to invest in category leaders that can defend their leadership over a long term, our investment in FINN is a perfect fit,” she added.
FINN said is on track to grow to 30,000 global subscribers this year.
“As consumers shift from offline to online and favor flexibility and ease-of-use over ownership, FINN provides the ideal solution to the evolving automotive customer,” the company said. “Through its strong, direct partnerships with the most popular automotive manufacturers, FINN provides customers the unique ability to subscribe to a broad selection of new cars with no hidden fees and no down-payments — the price online includes insurance, maintenance, roadside assistance, and various term options.
“Its partnership with electric vehicle automakers also helps accelerate the transition to electric cars by allowing new users to test drive them through a subscription before they purchase,” the company went on to say.
Pinsent Masons LLP acted as legal advisor for Korelya Capital for this transaction.