The mobility startup FlexCar received a record investment for the Greek ecosystem with the closing of a €50M round from international and local investors such as VentureFriends and Uni.Fund. The raised funds will be used for the development of FlexCar in Greece and abroad and for hiring new customer service, technology, and finance local talent. The company’s goal f is to hire more than 100 people in Greece and Cyprus by the end of this year, and an additional 200 people in 2022.
The car-as-a-service company makes car ownership flexible by simplifying the process of leasing a vehicle and minimizing advance payments. FlexCar allows individuals, freelance drivers, and businesses to get the car, scooter, or commercial van they want in a quick and convenient way without having to deal with bureaucratic procedures and paying deposits. This business model is beginning to gain traction across Europe and only in the last couple of months, there have been two acquisitions of companies with similar operating models – the British Drover and the German Cluno.
Founded 3 years ago by Konstantinos Davaris and George Desyllas, FlexCar claims to have already made direct investments of tens of millions euros in the Greek economy. Panos Lioulias, Partner of Uni.Fund shares that FlexCar is the fastest-growing company in their portfolio and he believes that based on its strong business model, the startup will reach the unicorn level soon.
FlexCar vs Traditional leasing
FlexCar’s model offers flexibility with minimum refundable deposits. It makes it possible for its users to have the vehicle they want within 10 working days and keep it for as long as they want. The service works with a subscription model and charges a fixed monthly rent, which covers everything besides fuel, including road tax, insurance, repairs, and overall car care. Drivers can also buy the car they have rented by making payments each month at market competitive terms.
The whole process of renting a vehicle is digitized. Drivers can choose the car they want from the online platform of FlexCar and in order to get a verification, they need to provide some legal documents such as a copy of their ID, driver’s license, and tax clearance.
In comparison, when drivers lease a car, they are not offered zero advance payment, and cannot make redemptions and returns at any moment, nor can they change the car with a different model.
Social and environmental impact
FlexCars plans to further develop its fleet and offer its users more eco-friendly opportunities to choose from, including hybrid and electric vehicles. With this in the next two years, the startup will be able to realize its mission of creating a positive environmental footprint and creating more jobs for young Greek graduates. The short-term plans of the company include the creation of an international FlexCar hub in Greece, which will consist of Greek graduates and will be focused on supporting overseas development in the fields of marketing, finance, and technology.