Finn, a Munich-based startup, has secured a major investment for its car subscription platform. The company, renowned for providing new car subscriptions as an alternative to buying or leasing, raised €100 million ($109-110 million). This Series C funding round catapults Finn’s valuation to €600 million ($658 million). The platform, currently operating in Germany and the U.S., manages 25,000 subscriptions. The funding will be directed towards technological advancements and expansion, with a focus on electric vehicles and cloud-based service management tools.
About the Company
Founded in 2019 in Germany and expanding to the U.S. in 2022, Finn offers a fresh take in the car subscription market. The company boasts about 97% new cars in its inventory, offered typically on 12-month subscriptions. Finn simplifies the car subscription process, including insurance, tax, and technical inspection costs in its monthly fees, with prices ranging from €430 to €1,200. Despite not yet being profitable overall, the company has achieved annualized recurring revenues of €160 million. A significant portion of revenue has come from Germany.
Leadership in sustainability
The funding round was led by Planet First Partners, a European growth equity firm focusing on sustainability. Nathan Medlock, the firm’s managing partner and a new member of Finn’s board, emphasized the importance of electric vehicles in reducing global emissions. He stated, “The transition to electric vehicles is crucial in our move towards a more sustainable economy.” Finn aligns with this vision, aiming for 80% of its car inventory to be electric by 2028, up from 40% today.
Navigating a challenging market
The car subscription market has been tumultuous, with several high-profile startups collapsing or pivoting. However, Finn’s CEO, Maximilian Wühr, believes that the company’s later entry into the market has provided valuable insights. Wühr said, “We want to make sure that the companion app is working really well for subscribers.” By focusing on new cars sourced directly from OEMs and targeting both individual consumers and businesses, Finn has avoided the pitfalls that befell its peers.
Finn’s approach includes an efficient e-commerce platform for car transactions, reducing shopping cart abandonment. The company plans to enhance its app for a more seamless customer experience. Finn aims to minimise human interaction in customer support.
Expansion & future prospects
Finn faces unique challenges in its recent U.S. expansion. While successful in Germany with strong OEM relationships, the U.S. market requires greater scale for similar success.
The U.S. is working really well from a consumer perspective, but it is a bit harder to get to the right OEMs.
CEO of Finn, Maximilian Wühr
Finn’s focus on connected car technologies and real-time diagnostics, despite current limitations, shows its commitment to evolving in line with automotive advancements.
—
Are you looking to hire your next tech specialist? Get in touch with one of the PL Talents’ experts – we are the number one tech recruitment specialist in Germany.