FlexClub, a South African car subscription marketplace, has raised an additional US$5 million in equity and debt financing.
FlexClub, founded in November 2018, is a regulated marketplace that facilitates investing in cars rented to people easier.
Essentially, it allows users to buy cars, which are then paired with Uber drivers who pay the investor a weekly rental fee.
After raising $US1.2 million in 2019, the South African car subscription marketplace, has raised an additional US$5 million in equity and debt funding to help it expand.
The marketplace announced a partnership with Uber in 2019, enabling Uber drivers in South Africa and Mexico to sign up for commercial car subscriptions.
FlexClub raised US$1.2 million in seed funding in 2019 and has now raised another US$5 million in a round led by Kindred Ventures, an early participant in global technology companies such as Uber, Postmates, Virgin Hyperloop, and Coinbase.
Among the prominent angel investors are Matt Mullenweg, the founder of WordPress, Federico Ranero, the COO of KAVAK, Tariq Zaid, formerly of Shopify and Getaround, and Ron Pragides, formerly of Twitter and Salesforce.
Tinashe Ruzane, FlexClub’s co-founder and CEO, said, “With experienced and highly respected VC investors like Kindred Ventures, CRE Venture Capital, and Endeavor backing our plan, we’re well positioned to usher in the future of how people get cars in markets like Mexico and South Africa.”
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