Telecommunications and internet conglomerate SoftBank led a $385m series B round for US-based automotive leasing service Fair yesterday at a valuation reported by TechCrunch to be “definitely over $1bn”.
The round included Exponential Ventures, the innovation arm of insurance firm MMI Holdings, as well as online lending platform CreditEase, reinsurance firm Munich Re’s Ergo Fund and growth equity firm G Squared.
Founded in 2016, Fair has built a mobile app that enables users to select a car from the platform and drive if for as long as they want, paying through a flexible leasing agreement.
The company has also signed a partnership with ride hailing platform Uber that will enable its drivers to source vehicles from Fair on a flexible basis.
Next47, a corporate venturing subsidiary of industrial product and appliance manufacturer Siemens, led a $50m funding round for Fair in February this year that included CreditEase’s FinTech Investment Fund and carmaker BMW, G Squared, Millennium Technology Value Partners, 137 Ventures and Upfront Ventures.
BMW subsidiary BMW i Ventures, fellow automotive manufacturer Mercedes Benz and car dealership owner Penske Automotive Group had invested an undisclosed sum in Fair four months earlier, as the company raised up to $1bn in debt financing.
Fair had previously received $16m in a seed round disclosed when it emerged from stealth in September 2017. Javelin Venture Partners led that round, investing alongside CRV, Foundation Capital, Moonshots Capital and Sherpa Capital.
Lydia Jett, senior investor at SoftBank Investment Advisers, which manages the firm’s Vision Fund, said: “Fair provides a simple and affordable way for people to get access to a car for personal use, ride sharing or car sharing.
“This investment will enable Fair to provide cars on a global scale, and help reduce the barriers to mobility. We believe it unlocks tremendous value for customers, and will create new partnership opportunities across the transportation industry more broadly.”