French car rental startup Drivy secures $8.3M in funding for European expansion
French car rental service provider Drivy has closed $8.3 million (€6 million) in its firs funding round that will help the company expand in Europe. Index Ventures and Alven Capital led the said financing, according to VentureBeat.
The startup said it will use its new capital to extend its reach to Germany, Spain, the Netherlands, Belgium, the UK, and Italy. Drivy will also beef up its workforce and product development campaigns. To date, the startup has raised a total capital of $11.1 million, the report detailed.
Drivy is not like other car startups such as Uber and Lyft, because it does not offer taxi replacement services. Rather, the firm allows people to rent out cars that they are not using for the moment to give other people an alternative option to chain car-rental companies. It is sort-of an Airbnb for vehicles, the report explained.
As of now, Drivy has 250,000 active users with each car owner earning $1,388 (€1,000) every year from renting their car out. The company also claims to have a 20% growth every month, prompting the startup to be ranked among the biggest European car rental firms, VentureBeat reported.