Digital car subscription start-up Cluno has raised $28 million from Valar Ventures, the company announced. Existing investors Acton Capital Partners and Atlantic Labs also participated in the Series B round. The two invested €7 million ($8 million U.S.) in the business in April 2018.
The start-up targets users who prefer driving a car instead of relying on carsharing services, but don’t find purchasing or leasing a vehicle flexible enough. Customers can book a car online or via an app within three minutes, according to the company.
Cluno offers 50 models from nine different manufacturers. Monthly fees range from €259 ($294) to €749 ($850), including all costs except fuel. Contract periods last for six months and vehicles can be delivered to a customer’s door.
“They have simplified the complex process of car financing and made it available in a straightforward way through their app,” Valar Ventures general partner Andrew McCormack (LinkedIn profile) said. “Through Cluno’s automated credit check, users can also receive feedback in real time. The success of Netflix and Spotify has confirmed the trend towards usage over ownership. The same concept will be standard in mobility and car ownership.”
Cluno was founded by Christina Polleti (LinkedIn profile), Nico Polleti (LinkedIn profile), and Andreas Schuierer (LinkedIn profile) in 2017. The three said they will use the new funding for technological developments and to add new models to its inventory.
Cluno hopes to become the market leader for digital car subscriptions in Europe.