Car subscription provider Cluno raises $28M Series B funding round
Munich/New York City, February 7, 2019 – Cluno closes its Series B funding round led by Peter Thiel’s Valar Ventures and participated by Acton Capital and Atlantic Labs – the Munich-based mobility-fintech-startup has secured another $28 million to further expand the business.
After raising €7 million (~$8 million) in a Series A investment round led by Acton Capital 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.
Cluno 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
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.
Based in New York City, US, Peter Thiel’s Valar Ventures focuses on fast growing technology companies and already invested in German fintech N26. Andrew McCormack, General Partner of Valar Ventures: “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.“
– Andrew McCormack, Valar Ventures
Cluno’s digital car subscription challenges traditional car ownership models in the mobility market and expands the space between hourly and years-long commitments with a flexible option and transparent, fully predictable costs. The car subscription is offered at a fixed monthly package price covering all costs – such as maintenance, wear and tear, seasonal tyres, warranty, registration, vehicle tax, insurance and vehicle inspections – except fuel. The minimum booking period is six months per vehicle. Subject to a notice period of three months, customers can change their vehicle after the minimum period, pause their car subscription, or continue on with their Cluno car indefinitely. More than 70 models spanning a number of brands are available – from Opel Corsa to Porsche 911 via Cluno’s website or the Cluno App for iOS and Android.