Carbar says the funding will facilitate thousands of new car subscriptions, adding diversity to Carbar’s existing fleet of cars, which have grown and to include EVs (electric vehicles).
Carbar adds it will also provide the flexibility to scale up as the business continues to grow.
Carbar has grown subscribers 20x since its last funding round in June 2019.
“The ABS facility essentially creates a new asset class for investors. They get a stable stream of return and also exposure to a highly liquid asset class,” Carbar co-founder and CEO Des Hang says.
“We fielded a lot of interest in the ABS. GCI was selected as they have built their platform on partnering with growing issuers like Carbar, offering the flexibility to scale a new facility,” Des Hang adds.
“Our specialist Asset Backed Finance capabilities and funds allow us to partner with exciting growth companies like Carbar and provide our investors with a unique exposure to emerging asset classes such as car subscription,” GCI managing director and co-founder Gavin Solsky notes.
The ABS funding couldn’t be timelier as Carbar is targeting closing a growth equity round in the coming weeks. New and existing investors are responding to fill the round.
Hang says the last round allowed them to launch in both Sydney and Brisbane, and execute many back-end technology projects to allow smoother operation and faster growth.
Hang also notes the company launched a loyalty program that rewards long-term subscribers and positions car subscriptions as a strong alternative to a novated loan.
“This next round is focused on scaling our operations in our existing markets and expanding to other key Australian cities,” Hang says. “We have to ensure we get the formula right in this market before expanding offshore.”
The pandemic has piqued interest among consumers to invest in EVs, Hang says. “Many Australians are opting for private transport over public transport. That translated into a rush of customers for our service.”
Starting from $145, car subscription includes everything except fuel—so moving to electricity is a suitable alternative as consumers try to reduce debt and ongoing costs of running a vehicle.