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Spanish Startup Revel Raises $125 Million for Car Subscription Platform

Startup Revel Raises $125M for Car Subscription Platform

Spanish digital car subscription service provider Revel has reportedly raised 115 million euros (about $123 million) in a funding round.

The money, which includes a 15 million euro (about $16 million) capital investment and a debt financing structure of up to 100 million euros (about $107 million), will accelerate the company’s expansion plans and further develop its car subscription service, EU-Startups reported Friday (Sept. 15).

Collaborating with Santander Consumer Finance and credit funds managed by global investment firm KKR, among others, Revel aims to transform the way people access and use cars, according to the report.

The company, founded in 2020 by Spanish entrepreneurs Enrique de Mateo and Daniel Marcos, offers an alternative to traditional car ownership through its digital platform, the report said. The company’s car subscription service provides customers with access to a range of vehicles while prioritizing sustainability.

Sustainability is a fundamental pillar for Revel, which is committed to providing electric vehicles through its platform, per the report.

“At Revel, we are very pleased with the closing of this round, which validates the work carried out so far by the entire team,” said de Mateo, who is co-founder and CEO of Revel, in the report. “This not only provides us with the capital that will allow us to continue growing and advancing but also brings leading global strategic partners into the project.”

The collaboration between Revel and KKR, along with Santander Consumer Renting as the backup servicer, has resulted in a financial structure designed to finance vehicles on the platform, according to the report. The strategic approach not only supports the company’s growth but also ensures its attractiveness to financial and operational partners.

The car subscription model appeals to people who would have been looking at leasing but find that a subscription, while in some ways similar to leasing, offers more value, Max-Josef Meier, who at the time was CEO and co-founder of FINN, told PYMNTS in an interview posted in February 2022.

“It’s definitely true that people like more flexibility and less long commitments,” Meier said at the time. “Maybe 10 years ago, a commitment of three or four years for a lease would be absolutely fine for most people. But now for many people, three or four years is quite a commitment.”