SA’s FlexClub Raises Additional $5m in Funding to Scale Car Subscription Service

Formed in November 2018, FlexClub is a managed marketplace that simplifies investing in cars rented to people using gig platforms to earn a living. Essentially, it allows users to purchase vehicles which are then matched with Uber drivers who pay a weekly rental charge to the investor.

FlexClub, a South African car subscription marketplace, has raised an additional US$5 million in equity and debt capital to help it grow after raising $US1.2 million in 2019.

FlexClub, founded in November 2018, is a controlled marketplace that makes investing in cars rented to people who make money via gig platforms easier. Essentially, it allows users to buy cars, which are then paired with Uber drivers who pay the investor a weekly rental fee.

In 2019, the marketplace announced a collaboration with Uber, allowing Uber drivers in South Africa and Mexico to subscribe to commercial car subscriptions.

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FlexClub raised a US$1.2 million seed round in 2019, and it has now added to that with US$5 million in a round led by Kindred Ventures, early backers of global technology businesses such as Uber, Postmates, Virgin Hyperloop and Coinbase. It also features prominent angel investors such as Matt Mullenweg, founder of WordPress; Federico Ranero, COO of KAVAK; Tariq Zaid, formerly of Shopify and Getaround; and Ron Pragides, formerly of Twitter and Salesforce.

FlexClub secured a seed funding round of US$1.2 million in 2019, and it has now raised an additional US$5 million in a round led by Kindred Ventures, an early investor of global technology companies including Uber, Postmates, Virgin Hyperloop, and Coinbase. Matt Mullenweg, the founder of WordPress, Federico Ranero, the COO of KAVAK, Tariq Zaid, formerly of Shopify and Getaround, and Ron Pragides, formerly of Twitter and Salesforce, are among the influential angel investors.

The co-founder and chief executive officer (CEO) of FlexClub, Tinashe Ruzane said “With seasoned and highly respected VC investors like Kindred Ventures, CRE Venture Capital and Endeavor getting behind our mission, we’re well placed to usher in the future of how people get cars in markets like Mexico and South Africa”.

According to Ruzane, the anticipated change in how people acquire vehicles is similar to the evolution that has occurred in other market sectors such as music retail over the last decade.