Drivy is driving money.
The French car rental startup has raised $8.7 million from BPI’s Ecotechnologie Fund, Via-ID, Index Ventures and Alven Capital, according to a post made by Index Ventures. In addition, the company purchased its competitor, Buzzcar.
Drivy operates by allowing users to rent a car from each other, usually at a lower cost than a traditional rental company but not at the expense of insurance. Providing a source of additional income to car owners who do not often use their vehicles, the service is currently available in France and Germany — but Drivy reportedly plans to expand to Spain and a third country. It entered into its first international market (with Germany) in 2014.
In addition to aiding Drivy’s expansion, CEO Paulin Dementhon stated that the extra funding will boost its research, development and innovation efforts — helping to make users’ experiences “ever more flexible and friction-free.”
Including the numbers it is taking on from acquiring Buzzcar (100,000 users and 7,000 cars), Drivy boasts 500,000 users and 26,000 vehicles available for rent.
“We think we can get 3 million members and 300,000 cars in three years’ time,” Dementhon said in an interview. “This market represents €500 billion just for Europe. In order to become a leader on this consumer market, we undeniably need a high financial capacity.”
Investors are equally enthusiastic about the possibilities Drivy has in store.
“Drivy already boasts operational metrics close to that of traditional car rental giants,” stated Mathieu Rouget, investment director of the Ecotechnology Fund. “We are delighted to contribute to the success of a beautiful and promising French startup and its environmentally sound model: one single Drivy car replaces nine standard cars and reduces the need for eight parking spaces!”