car rental startup, vai.car, raises us$85 million with xp investimentos
Contxto – Vai.Car is a startup from Brazil that allows users to rent one of its cars through its app. With that purpose in mind, it recently raised R$380 million (about US$85 million) to increase the number of vehicles in its fleet.
The round was led by XP Investimentos. Returning investors BMG and Bossa Nova Investimentos also contributed.
It’s unknown how many cars are currently under Vai.Car’s management. Nonetheless, the startup from São Paulo plans to own 25,000 vehicles within 18 months according to the announcement made last Thursday (28).
Since when has car shopping ever been an affordable affair? For the average Jane and Joe, the answer is never. And that’s why startups like Vai.Car exist in the first place, duh.
Related article: Brazilian startup Kovi lands US$30 million Series A led by Global Founders
Startup for car rentals
Conceived in the United States in 2016, but born and operating in Brazil, Vai.Car knows that younger users, like millennials, can appreciate a pay-per-use model for using a vehicle. As opposed to taking out a money-sucking loan.
But the startup also targets people who want to work as drivers under ride-hailing platforms like Uber and 99, but lack the car for it.
In both cases, the startup enables users to rent a car over a fixed period of time. With the rental come other perks such as delivering the car to the user’s door and an insurance policy.
It also brings innovation into the mix by using face recognition technology to validate a user’s identity and prevent fraud.
Related article: Turbi predicts exponential growth for 2020 with US$34 million of revenue and 5,000 car rentals
Urban mobility alternatives continue
Startups with this car rental setup are proving to be attractive in Brazil. As is the case with, Kovi, which runs under a similar model as Vai.Car, and has thus far raised US$40.5 million since its 2018 founding. But it’s not astonishing given the size of the market.
Moreover, so long as demand exists and ride-hailing platforms continue to operate undisturbed, more startups like Kovi and Vai.Car will emerge and raise funding.
There are also different approaches when it comes to renting a car via an app.
For example with Mexican Carrot and Colombian Rennty, give drivers access to marketplaces to rent a vehicle whether from an individual owner or a company. Back in Brazil, Turbi deploys a car-sharing model where users pick up one of its vehicles at a designated location and pay per kilometer driven.
In sum, there are lots of alternatives to choose from.
But with so many crazy drivers out there, I’m still somewhat content taking the bus. Even if the quality of service it provides is deplorable.
Related articles: Tech and startups from Brazil!
-ML
