Used-car leasing app Fair has closed a $100 million debt facility and equity investment led by Ally Financial. With Ally’s investment, the three-year-old vehicle subscription company has raised $1.6 billion in funding over 10 rounds. The funds will be used to purchase more vehicles for Fair’s fleet.
The Ally investment comes on the heels of Fair’s $50 million debt facility backed by Silicon Valley Bank, which closed on January 24. Late last year, SoftBank led a $385 million Series B round with additional investments from Exponential Ventures, Munich Re Venture’s ERGO Fund, G Squared and CreditEase. Other investors in the startup include Credit Suisse and Goldman Sachs.
Ally Financial — which boasts an $80.6 billion auto portfolio — entered a “strategic alliance” with Fair in 2018. Since establishing the partnership, Fair has leveraged Ally’s SmartAuction to acquire and remarket vehicles, as well as Ally’s direct and digital financing platform Clearlane.
“This deal is the latest evidence that institutional debt markets are highly receptive to the way Fair is transforming vehicle financing,” said Georg Bauer, co-founder and chairman of Fair. “It’s clear we’ll be able to continue to access the capital we need in order to connect dealers and consumers through a fully digital end-to-end experience.”
Since its inception in August 2017, Fair has provided cars for 45,000 users through its 3,000 dealer partners in 30 markets across the country, the company noted.
Source : AutoFinanceNews
