Spanish car-as-a-service marketplace startup Bipi has announced a €10.5M Series B financing round led by Adevinta Ventures, investment arm of the European online classifieds leader Adevinta, alongside new investors Toyota AI Ventures and AtresMedia and existing investors, automotive venture capital fund Maniv Mobility, as well as IDC Ventures and TA Ventures. Bipi is a leading European car subscription startup that offers consumers a hassle-free alternative to car ownership, with flexible monthly subscriptions on high-quality new and used cars for a single, all-inclusive monthly payment, using a digital-first, 100% online transactional process.
Bipi leads the market in Spain for digital car subscriptions, and will use the new funding to further accelerate its local growth, add new talent to its current team of 80 employees, invest in technology, and prepare its expansion to new European markets, including France. Bipi’s impressive growth has continued through the most difficult parts of the COVID period, with customers looking for private mobility options turning to Bipi as the most consumer-friendly car access platform in Spain.
Lead investor Adevinta operates in more than 15 countries in Europe and globally under its various brands including Coches.net (Spain’s largest used car classifieds business), Infojobs, Leboncoin, Subito and others, alongside investors. Toyota AI Ventures, Toyota’s early-stage venture capital fund, invests in startups around the world that are developing innovative technologies and business models.
Ninety eight percent of car transactions in Europe occur offline today, and Bipi is transforming this market into a 100% online experience, making it as easy as buying a pair of jeans. Bipi’s subscription model is a highly flexible and is a simple way for consumers to access a new car – and everything else that car ownership entails – without purchasing one outright. Customers browse through Bipi’s wide selection of new and used cars from a range of brands and models, choose a car, and get it delivered to their home within days, paying a single, all-inclusive monthly subscription fee without any upfront payments. In contrast to purchasing, financing, or leasing a car, everything is included in the monthly payment – delivery, insurance, maintenance, roadside assistance, annual registration fees, and more – and consumers have flexibility of choice and the possibility to swap cars anytime. Bipi has become a new distribution, payment and digital platform for many fleet owners, including some of the world’s leading leasing companies, carmakers and dealerships.
LEADING SPANISH CAR-AS-A-SERVICE MARKETPLACE
Hans Christ, co-founder and CEO of Bipi, said: “We’re delighted to announce the first part of our Series B financing round. Our partnership with Adevinta, Toyota AI Ventures and A3 Media is a game changer for Bipi, and we look forward to unlocking new pools of demand and offering more people new ways of accessing a car. Our mission is to digitize the car experience, making vehicle access enjoyable and stress-free. We will use the funds to grow more aggressively in Spain, expand to new markets and grow our tech and management team”.
Ovidiu Solomonov, Senior Vice President Global Markets and Ventures at Adevinta, said: “We are very excited to join the ride with Bipi. Together with Hans, Alejandro and their team, we are exploring new ways to address our users’ needs, and to improve the car-as-a-service market, offering a fully digital and more flexible experience”.
Jim Adler, founding managing director of Toyota AI Ventures, said: “Personally operated mobility is essential for many, especially in these times. Bipi’s innovative car subscription service increases mobility access, providing the benefits and convenience of ownership with the flexibility of rentals. We are excited to support the Bipi team as they scale their service in Europe.”
Together with this new financing, Bipi has successfully raised a total of 20 million euros from investors in the last three years. Bipi is operating in a high-growth market. According to McKinsey, subscription models saw more than 100% annual growth over the past five years. Frost & Sullivan predicts that car subscription models will represent around 10% of all car sales by 2025. Spain is the fastest growing market for passenger vehicles car-as-a-service in the EU.