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Virtuo raises £68M, London VC invests in French on-demand car rental startup for expansion in Europe

Virtuo is all about renting a car, but not as you know it. Based out of Paris, the company is reinventing car rental through their mobile app. No paperwork, no rental counters, and queues. 

Raised £68 million

Now the car-on-demand service has raised $60 million (approx £42.4 million) in Series C funding led by AXA Venture Partners. 

Other investors including, Bpifrance through their Large Venture funds, Alpha Intelligence Capital, H14, and existing investors London-based VC Balderton Capital, Iris Capital, and Raise Ventures, also participated. 

Also, Natixis and members of the Banque Populaire and Caisse d’Epargne Group are granting Virtuo pan-European asset-based financing of $36 million (approx £25.4 million) to support the development of its fleet. 

This brings this new round of financing to $96 million (approx £68 million). To date, Virtuo has raised $100 million (approx £71 million) in funding. 

How will the funding be used?

The company is planning to use the funding to invest in its technology and launch innovative new services. A part of the funding will be used to accelerate its presence in Europe. At present, the company operates in the UK, Spain, and France. 

As we reported earlier this year, the French company is also planning to expand its service to Milan this month and Germany in 2022. Virtuo aims to cover 10 markets by 2025. The car-hire startup will launch both consumer and business offerings. 

Besides expansion, the company is looking to accelerate the electrification of its fleet. Virtuo is aiming to electrify 50% of its fleet by 2025 and to have a 100% electric fleet by 2030. In France, the company has integrated Hyundai Kona Electric into its fleet. 

Reinventing car rental

Founded by Karim Kaddoura and Thibault Chassagne in Paris in 2016, Virtuo has not only emerged as the convenient and modern alternative to car rental for city escapes and mid-distance trips but as an alternative to owning a car altogether. 

The company has launched Virtuo Delivered, a new delivery service where you can get your Virtuo car delivered and collected from your chosen address. It is now live across London and recently launched in Paris and Madrid. 

“Our ambition for Virtuo and our car on-demand service is to reinvent our relationship with cars. To provide all the benefits that cars can offer while using technology to remove the physical burden,” said Karim Kaddoura and Thibault Chassagne, Virtuo’s Co-founders. “We believe you should be able to access a car the same way you stream music or films: the car should appear on demand when you need it, but disappear from sight when you don’t.”

Our vision is that our car-on-demand service should support a new social contract between city dwellers and the car, where they benefit from the freedom a car brings but without the burden on our cities and the environment,” they add. “At Virtuo, we want to put cars in people’s pockets, not on city streets.”

We are very proud and excited to be part of the Virtuo adventure alongside the Virtuo team, led by Karim and Thibault,” says Benoit Fosseprez, General Partner at AXA Venture Partners. “Virtuo has quickly become a tech leader disrupting the car rental space, with a clear long-term vision and strong ambitions for growth into new markets. We have been impressed by the Virtuo team and look forward to working closely together on the next stages of their development. With this investment in Virtuo, the first for our Growth II fund, we are confirming our ambition in the tech-led high growth companies segment.”

Caroline Lebel of Bpifrance’s Large Venture fund added, “We are delighted to support Virtuo in its development. The company offers a true alternative to owning private cars for city dwellers who wish to use more sustainable shared mobility solutions. Born in the digital era, Virtuo’s 100% digital experience is backed by powerful technology and artificial intelligence to optimise its operations. We are convinced that the mobility of tomorrow must be built with strong technology at its core, addressing new behaviours and with the freedom of choice of a multimodal offer.”

The post Virtuo raises £68M, London VC invests in French on-demand car rental startup for expansion in Europe appeared first on UKTN (UK Tech News).

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