Car Subscription Provider Cluno Raises $28 M Series B Funding
Munich/New York City, February 7, 2019 – Fresh capital for Cluno‘s car subscription service: through its Series B funding round led by Valar Ventures, the mobility and fintech company Cluno has secured $28 million to further expand the business. Based in New York, Peter Thiel’s Valar Ventures focuses on fast growing technology companies. Among others, it has invested in N26. Existing investors Acton Capital Partners and Atlantic Labs also took part in the round.
After raising €7 million (~$8 million) in a Series A investment round in April 2018, Cluno has secured further significant financing. In total, Cluno has raised $36 million in funding in less than one year. Cluno will use the additional capital to further accelerate the company’s growth momentum and to fuel its technological advance. The company is the only independent provider of a flexible and completely digital car subscription service in Germany. The whole process of making the booking, as well as credit checks and signatures, are carried out totally paperlessly via app, rendering Cluno the first company to totally digitize access to one’s own car. The Cluno app for iOS was published on October 31, 2018, with the Android app following in early 2019.
Cluno provides a subscription model for car ownership. It is a flexible and revolutionarily simple way for consumers to drive their own car without buying it. In just three minutes, users can digitally book a car in the app for an all-inclusive, monthly subscription fee and get it delivered to their desired place. In contrast to purchasing, financing or leasing a car, there is no long-term commitment – the minimum contract period is six months, with a notice period of three months.
Not tied to a particular brand, Cluno offers almost 50 models from nine different makes, including BMW, VW, Audi and Ford in all of Germany. Featuring small cars to SUVs, as well as new technologies like hybrid and electric vehicles, Cluno’s already broad range will be significantly expanded in 2019.
“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.”
– Nico Polleti, co-founder and CEO of Cluno
Andrew McCormack, General Partner of Valar Ventures, adds: “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. 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 is operating in a thriving and high-growth market. According to McKinsey, subscription models saw more than 100% growth annually in the past five years. Frost & Sullivan predict that car subscription models will represent around 10% of all car sales by 2025.