Finn, a Munich-based startup operating a new car subscription platform, has recently raised $109 million in a Series C funding round. This latest funding values the company at $658 million. The funding round was led by Planet First Partners, a European growth equity firm focusing on sustainability. The round also saw participation from previous backers such as HV Capital, Korelya Capital, UVC Partners, White Star Capital, and Picus Capital.
Finn plans to utilize the funds to expand its technology infrastructure and reach, with a specific focus on increasing its presence in the electric vehicle (EV) market. The company aims to have 80% of its car inventory electric by 2028, up from the current 40%. The funding round brings Finn’s total equity raised to approximately $250 million, along with an additional $1 billion in debt, which is offered on a rolling facility and repaid based on the number of cars sold.
Finn, founded in Germany in 2019 and expanded into the U.S. in 2022, manages 25,000 subscriptions in both countries. It offers new cars on subscription for around 12 months, sourced directly from original equipment manufacturers (OEMs) in bulk. The company has streamlined the process with an e-commerce platform, allowing customers to subscribe to a car in less than five minutes, with delivery to their doorstep within days.
The startup has reached annualized recurring revenues of €160 million across its two markets, with the majority in Germany. While Finn is not yet profitable overall, its CEO, Maximilian Wühr, notes that the core product is profitable, indicating successful unit economics. The company aims to enhance its app to create a more seamless experience for subscribers, reducing the need for human interaction and potentially tapping into the connected car evolution.
Despite challenges in the car subscription market, Finn believes its late entry has provided valuable insights, allowing it to avoid the mistakes made by some of its predecessors. The expansion into the U.S. is still a work in progress, with challenges in establishing relationships with OEMs, but the company remains optimistic about the consumer perspective in the U.S. market.