London-based car subscription company Drover has attracted £20.5 million from new investors as it looks to scale up its business in the UK and France.
The investment has been co-led by new investors Target Global, RTP Global and Autotech Ventures.
Additional new investors are Channel 4 Ventures and Rider Global.
Existing investors Cherry Ventures, BP Ventures, Partech, Version One and Forward Partners also participated in the round.
Drover will be using the new capital to scale its ‘car-as-a-service’ business across the UK, where it launched initially, and France, where it launched earlier this year.
The company will invest further into its technology platform and into nationwide marketing campaigns to turn Drover into a leading car retail brand.
For one flat monthly payment, Drover customers can get a car with everything included, for a duration of one month to two years, without the need to take on debt.
Users create a profile, upload a photo of their driver’s licence, browse a selection of cars tailored to their location and budget, then personalise their subscription package based on their preferred term time, mileage and insurance options.
Drover then delivers the car to their door within 72 hours, customers pay monthly throughout their subscription, and Drover takes the car back at the end of the term.
Jaguar, Land Rover, Citroen, DS, Peugeot, Volkswagen and Lexus have all launched Drover subscription packages in partnership with the company.
Felix Leuschner, Drover’s founder and CEO, said: “The car market is one of the last retail categories that has yet to shift online, with online penetration of car sales being still below 1%, while 20% of all UK retail sales are now online.
“Drover’s digital ‘cars-as-a-service’ model is the right approach to truly build the ‘Amazon of Cars’ as it lends itself much better to an online model than does the long-term commitment, high ticket size type transaction of buying a car with cash or on finance.”