Virtuo raised € 50 million in capital from Axa Ventures Partners and Bpifrance. Transaction closed in the amount of € 30 million from Natixis and the foundations of the BPCE Group.
Virtuo, a new car rental company aimed primarily at urban clients who do not own a car, has announced that it raised € 80 million, including 50 million in capital for expansion into Europe.
Founded in 2016, Virtuo is currently present in 19 European cities in France, UK, Spain and very soon in Italy, and it aims to have a presence in 10 countries by 2025.
The rental process is entirely online, with the user taking an inventory and unlocking the vehicle with their smartphone, at the places where Virtuo resides their cars (mainly underground parking lots).
Car maintenance – washing, repairs, etc. – is entrusted with a network of service providers. Like most startups and other fundraising companies, Virtuo, with 120 employees, remains very conservative about its business scale.
A fleet of 4,000 cars
The company’s co-founder, Karim Kaddoura, said the company now has “150,000 active customers,” who rent cars on average 4 days, with an average distance of 450 kilometers.
The end of incarceration gives him hope that the excessive growth recorded before 2020 will resume, with business volumes expected to double in 2021, after “only” 10% growth in 2020.
Virtuo has raised € 50 million in capital, mainly from Axa Ventures Partners and the Bpifrance Large Ventures Fund. The process is completed by a € 30 million bank financing line with Natixis and other institutions from the BPCE Group.
Virtuo uses hire-purchase to build its fleet, with fairly short contracts between 4 and 12 months allowing it to adapt to demand.
Mr. Kaddoura explained that the fleet of 2,500 vehicles will now rise to 4,000 at the height of the summer before dropping slightly in the autumn.