• Greek scale-up FlexCar successfully surpassed €300 million in investment;
• The latest round was led by US-based Data Point Capital, known for investments in pioneering companies within e-commerce, and digital tech sectors;
• The new capital will be utilized to expand the company’s fleet in the Greek, Cypriot, and Italian markets, as well as its new market Mexico;
The car-as-a-service startup simplifies the process of vehicle leasing and allows its customers to get their desired vehicles without having to deal with bureaucratic hassles.
The new funds will strengthen the company’s workforce, infrastructure, and incorporate advanced technology solutions into its service portfolio. FlexCar also aims to leverage these investments to solidify its position in these markets and further enhance its flexible vehicle leasing services.
“The key idea with regards to the core product and client experience is to evolve our offering into a fully integrated platform, by covering all kinds of services related to the usage and maintenance of a vehicle, while building new tech features enabled by the vehicles’ trackers and creating an IoT databank to support further product innovation and automations. We are also working on additional online/mobile features which will allow customers to enjoy a more streamlined experience with their vehicle.” George Bizas, FlexCar’s President and co-founder said.
To achieve this feat, the company is working on the digitalization of the user-experience by transforming the steps of the customer journey.
The activation/acquisition processes will be feasible to be completed online, and the company is also adding e-commerce features and launching an integrated mobile app which will allow customers to enjoy a more streamlined experience with their vehicle (e.g. online payments, maintenance appointments, fleet management, loyalty schemes etc.).
Going global with entry into Mexico and looking at new markets
Simultaneously, FlexCar is expanding its operations to Mexico, marking its entry into the Latin American market. The company has opened its FlexAuto office in the building of the Spanish Embassy in Mexico City and has already made its vehicles available for lease.
FlexCar’s debut in the new continent aligns with the strategic plan for greater extroversion and marks its entry into dynamic global markets, which further unlocks development prospects and growth potential in the field of flexible vehicle rentals and leasing services, the company said in a press release.
For investors such as VentureFriends, which have been backing the company since its beginning in 2018, the expansion is a testimony to the success that has been achieved so far and for its future plans as well.
“FlexCar found great product market fit since the early days and has since gone on a very consistent growth path. The only question mark was around international scalability, which the company answered with the fruitful expansion to Italy and now with the even more successful Mexico launch. We are very excited to have been part of the FlexCar journey since day one and look forward to what the future holds,” Apostolos Apostolakis, founding partner at VentureFriends, tells The Recursive.
The expansion also aligns with the company’s strategic plan for global growth, including new markets as well, FlexCar adds.
“The expansion into Mexico aligns with the Group’s strategic plan for global growth, including markets such as Israel too. Our performance to-date has proven that there is high demand for the FlexCar offering and the Group’s goal is to activate new targeted markets in which their offering is very attractive to consumers and these markets signify huge growth potential (segment interest and customer base) that will allow the Group to further establish its authority as a global leader in mobility and car-as-a-subscription/flexible leasing services.” George Desyllas, FlexCar’s CEO and co-founder added.
In addition to its leasing services, FlexCar launched OpenCars, a specialized business unit that markets its selection of cars that have completed their life cycle.
The company initially introduced the concept of flexible vehicle leasing to the Greek market, rapidly gaining consumer trust and acquiring a significant market share within two years. Despite the challenges posed by the market, FlexCar has managed to deploy over 10,000 vehicles in order to meet the increased demand and needs of its customers.