BMW i Ventures, the strategic investment arm of automotive manufacturer BMW, led a series A-1 round of undisclosed size for US-based digital vehicle seller Fair on Friday.
Fair disclosed details of the round, which includes car dealership owner Penske Automotive Group and unnamed additional strategic investors, alongside news that it has received offers for almost $1bn in debt financing from investment banks.
Fair runs an online platform that enables users to search for vehicles by make and model, and purchase them through monthly payments suited to their budget. Customers can qualify once their driver’s license and bank account has been approved.
Customers have the option to withdraw from the plan with five days notice at any time, and the model is intended to help potential buyers without the capital for a large upfront payment. The entire purchase process can be completed through a mobile device.
Scott Painter, Fair’s founder and CEO, said: “It is clear that technology is transforming how we buy and own our cars, and the consumer is the winner – with simpler, more flexible, and more cost-effective options than ever before.
“Fair is on the forefront of making personal mobility more accessible for a new generation of customers.”
Ulrich Quay, managing director of BMW i Ventures, added: “The company allows users to access vehicles without a fixed term. This appeals in particular to younger generations who want more flexible usage models.”
The latest round comes after Fair raised $16m in a seed round led by Javelin Venture Partners that included fellow venture capital firms CRV, Foundation Capital and Sherpa Capital.
In addition to its existing investors and the potential debt providers, Fair has also connected with an as-yet unclosed entity led by Sherpa Capital that will make strategic investments in disruptive transportation models, for potential funding.
The company is currently operational only in Los Angeles, but it intends to put the funding into expanding to the rest of California by the end of this year, and to other US markets in 2018.
– Image courtesy of Fair.com