Less than a week after announcing it purchased the active lease portfolio of Uber’s Xchange Leasing, Fair shared two more big moves on Monday: another round of funding and the purchase of vehicle-delivery app Skurt.
As far as the capital raise, Fair secured a round of strategic equity funding that is led by Siemens-backed next47 global venture fund and also includes BMW, CreditEase FinTech Investment Fund, Millennium Technology Value Partners, 137 Ventures, G Squared and Upfront Ventures.
“These investments are an important part of Fair's continuing and rapid growth, and are further confirmation that the future of car ownership lies in the digital, flexible and affordable model that Fair provides,” Fair founder and chief executive officer Scott Painter said in a news release.
“We’re gratified that Fair's reception from the investment community matches the enthusiastic response of our customers, who want to get a car the same way they make countless other digital purchases — from wherever they are and with no long-term commitment,” he said.
In the same news release, next47 partner T.J. Rylander said: “At next47, we're dedicated to help grow companies that will define the next generation of global innovation. It's clear that consumption models for personal transportation are changing rapidly and subscription-based pricing models are on the rise across all industries.
“Fair is at the forefront of marrying these two trends and making car ownership much more attractive for today's consumers while opening up new market opportunities for manufacturers and dealers,” Rylander said.
The amount of the funding was not disclosed.
Building on prior investments
Fair’s investment round of funding in the fall — which included equity investment from institutional and auto investors and dedicated debt capital from investment banks —was used towards “several moves in recent months,” the company said.
That includes the deal with Uber, where Fair, using a secured loan facility from Goldman Sachs Bank USA, purchased the existing lease contracts and vehicles of Xchange Leasing.
That deal includes an exclusive, long-term partnership between Uber and Fair that gives Uber drivers flexible access to vehicles.
It was already making a “significant positive impact” on the scalability of Fair’s model, with plans to “expand into several major markets,” a spokesperson said last week.
“This deal is already having a significant positive impact on our plans to scale,” the Fair spokesperson said via email. “Besides the thousands of Xchange Leasing vehicle leases we now own, we are already working to expand into several major markets to support demand from Uber drivers alongside the regular customers who would also be able to access Fair in those areas.”
In its latest announcement on the funding round and Skurt purchase, Fair said it plans to be available nationwide by year’s end. It has already finished expansion to all major markets in California, where the company is headquartered.
The acquisition of Skurt helps Fair in quickly scaling a cost-effective platform for vehicle delivery and pickup, as well as fleet management, Fair said.
Through Skurt, customer car deliveries can be digitally initiated and tracked through a central dashboard. The platform also provides real-time notifications, fleet-location tracing and instant communications while the car is being delivered.
An amount on the purchase was not disclosed in the news release.