Germany-based car subscription service Cluno announced that it has raised €140 million in debt financing.
The company recently secured two asset-backed financing deals totaling €80 million, in addition to the €60 million of debt previously obtained. And earlier this year the company raised €25 million in equity financing in a Series B round led by Valar Ventures, with participation from Acton Capital Partners and Atlantic Labs. To date, Cluno’s total amount raised stands at €32 million.
Founded in 2017, Cluno allows users in Germany the chance to subscribe to a car for an all-inclusive monthly fee. The car is booked online or via the Cluno app, and after a minimum term of six months, subscribers can return or switch their car with three months’ notice. There are multiple models from nine car companies available, including BMW, VW, Audi and Ford, with small cars, SUVs, hybrid and electric vehicles ready to be chosen.
Cluno told reporters that the new debt financing will be used to expand the company’s fleet “and serves as the basis for structures that are fit for capital markets.”
“The structured, asset-based financing via ‘Cluno FinTech 1 GmbH’ and ‘Cluno FinTech 2 GmbH’ is a highly profitable and at the same time insolvency-proof investment for banks. Cluno’s fully digital reporting and the resilient backup service structure contribute to reliability,” Dr. Veronika von Heise-Rotenburg, CFO of Cluno, said in a statement.
Nico Polleti, co-founder and CEO of Cluno, added: “Car subscription has proved to be very successful as a mobility concept and is on the verge of entering the mass market. As innovation driver in a fast-paced industry, we want to take our business model to the next level as quickly as possible. Our goals are scaling and, in the long run, internationalization. Both the financial resources as well as the trust of the financial institutions are a crucial lever.”