FlexClub Secures $5 Million Funding
FlexClub, a South African tech startup company has secured a great amount as a seed investment of USD 5 million from Kindred Ventures. FlexClub is a marketplace for car subscriptions that have been gaining traction for quite some time now.
This startup enables clients to buy, sell, swap, or cancel automotive requirements through their innovative platform. This investment round from Kindred Ventures is bound to expand the range of this tech-startup.
FlexClub secures A $5 Million Funding
FlexClub aims at scaling the business up with this seed investment round. This will enable the firm to use the brilliant platform that has been created to provide customers a reliable place to buy vehicles to their desire. Marlon Gallardo, Tinashe Ruzane, and Rudolf Vavruch founded the company in 2019 to enable a tech-based startup in the South African region for automotive subscription purposes.
The Co-founder and CEO of FlexClub, Tinashe Ruzane, have explained,
“The startup has attracted a large pool of investors due to its innovative business model that provides an effective solution to a challenge faced in the automotive industry. With seasoned and highly respected VC investors like Kindred Ventures, CRE Venture Capital, and Endeavor getting behind our mission, we’re well placed to usher in the future of how people get cars in markets like Mexico and South Africa and the support from prominent angel investors, like Matt Mullenweg (founder of WordPress), Federico Ranero (COO of KAVAK), Tariq Zaid (formerly of Shopify and Getaround) and Ron Pragides (formerly of Twitter and Salesforce), further validates the incredible global opportunity for our technology to reimagine commerce in the automotive industry”.
He also added,
“Our members are drawn to the fact that, in just a few clicks, they can get flexible access to a car that suits their needs in under a week. Members can choose vehicles from an array of reputable partners, without the need for large upfront deposits, high balloon payment obligations, or rigid long-term vehicle finance contracts; and they always have the freedom to buy the car, return it, or swap it at any time, without incurring any penalties or unexpected costs.”
Business Model of FlexClub
FlexClub has acquired partners from local and international established businesses. The company has gained Uber as a conglomerate in South Africa and Mexico. Recently, FlexClub has joined hands with a new system of “Drive now Buy Later” with Avis. These Collaborations have enabled the tech startup in the creation of brand -new and one-of-a-kind models.
Making deals with existing fleet providers, car rentals, and utilizing those advantages, FlexClub has earned a huge spot in the marketplace and is optimally handling the subscriptions on private as well as commercial client-bases.
Because of the pandemic, consumer behavior has made a drastic shift and that has also provided a boost in the tech platform of FlexClub in the e-commerce sector to progress in the automotive industry.
The well-organized digital subscription model of the tech startup has offered a solution to minimize the difference between auto retail and car rental companies. The reason is that the firm has bridged the gap by being an alternative to traditional car loan policies and systems. This has been one of the main reasons the market has drawn to them.
According to Tinashe Ruzane,
“Our partners recognize the opportunity to work with FlexClub to look beyond just driving unit sales of vehicles and transition towards building deeper relationships with customers through this service-driven approach. All while diversifying away from the reliance the auto industry now has on consumer vehicle financing to drive revenue. And the buy-in we have seen from partners like Avis and other major automotive distributors demonstrate that car subscriptions are finally emerging into the automotive zeitgeist.”
Saiyara Mahjabin Adrita
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