Carvolution closes another financing round of 16.2 million Swiss francs; this right after strengthening the Board of Directors by Morten Hannesbo, former CEO of AMAG.
The new funding will enable additional expansions in the car subscription sector and into new business opportunities.
Carvolution's car subscription business performance surpasses expectations.
Car subscription pioneer Carvolution has successfully closed a new financing round to further strengthen its car subscription service and accelerate its expansion in the used car market. The company received 16.2 million Swiss francs in the Series D financing round. Investors include all major existing institutional investors as well as new financiers. Previous financiers include Mobiliar, Redalpine, Armada Ventures and Ringier Digital Ventures.
Carvolution will use the new funding to further expand its core business in the growing car subscription segment. The car subscription as an alternative to buying and leasing cars is becoming more and more important and industry experts predict a significant market share for the car subscription by 2030. In addition, part of the funds will be used to simplify the buying and selling of used cars for a broad range of customers by shifting it to online. To build up this new business area, Carvolution founded the subsidiary Farie AG at the beginning of the year.
Lead investor Redalpine is impressed by the development and market position Carvolution has achieved by now. Peter Niederhauser, Founding Partner of Redalpine, explains: «Carvolution has succeeded to consistently keep its growth and build a strong brand. We are convinced by the execution of the business model and see enormous potential in the digitisation of the used car trade.»
With this positive financing, Carvolution's range of services can be further developed. Olivier Kofler, CEO and co-founder of Carvolution, emphasises: «We want to consequently pursue our chosen path and are pleased about the support of our existing and new investors. We will strengthen our leading position in the car subscription market with new products and services. With Farie, we will develop new business areas, as we are convinced that we can simplify the buying and selling of used cars in Switzerland.»
Going forward, Carvolution and Farie will leverage the full potential and synergies of the two businesses; further horizontal and vertical integrations are under development.