JOHANNESBURG - SOUTH African start-up FlexClub has secured another $5 million (R75m) in funding to scale its car subscription marketplace.
The firm raised $1.2m in 2019. Established in 2019 by co-founders Marlon Gallardo, Rudolf Vavruch and Tinashe Ruzane, FlexClub is an online marketplace connecting customers looking for flexible access to long-term cars with its partners offering car subscriptions.
FlexClub said on Friday it assessed the risk profile of its members using several alternative data sources and rewarded its members for responsible vehicle usage.
Since it collaborated with Uber in Mexico and South Africa in 2019, it had helped its community of drivers subscribe for cars that become cheaper to purchase every month through rewards.
FlexClub co-founder and chief executive Tinashe Ruzane said: “With seasoned and highly respected venture capital 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.”
Ruzane said the buy-in the firm had seen from partners like Avis and other major automotive distributors demonstrated that car subscriptions were finally emerging into the zeitgeist.