Car rental company Hertz has entered talks to invest an eight-figure sum in US-based on-demand parking service Luxe to lead its latest funding round, TechCrunch reported on Friday citing an undisclosed source.
Luxe is set to raise up to $50m in funding at a pre-money valuation of more than $110m and the round could also include existing investors, the source said, though details are still being finalised. Its past backers include GV, the corporate venturing unit formerly known as Google Ventures.
Luxe offers an app-based parking and valet service that can be accessed regularly through a subscription or once for a one-off fee. The model offers tie-up opportunities for a strategic investor like Hertz which provides vehicles to a substantial customer base.
The company raised $20m in a February 2015 series A round co-led by venture capital firms Redpoint Ventures and Venrock, after securing $5.5m in seed funding from investors including GV and Redpoint four months earlier.
Other participants in the seed round included Sherpa Ventures, Lightspeed Venture Partners, Upfront Ventures, Foundation Capital, BoxGroup, Slow Ventures, Eniac Ventures, Rothenberg Ventures and Data Collective.