SANTA MONICA, Calif., Jan. 24, 2019 /PRNewswire/ -- Car-as-a-Service provider Fair today announced it has closed a $50 million debt facility from Silicon Valley Bank (SVB) to buy cars for its users—the latest in a series of many such transactions the company is making with institutional lenders as it scales globally.
The SVB debt facility complements credit lines Fair is already accessing with Credit Suisse and Goldman Sachs. It follows Fair's closing of a SoftBank-led $385 million Series B funding round in December, which also included investments from Exponential Ventures, Munich Re Venture's ERGO Fund, G Squared, and CreditEase. With that transaction—subject to receipt of regulatory approvals and satisfaction of other customary closing conditions—Fair has now raised nearly $500 million in equity in the past year, which it is leveraging to access a vastly larger sum of debt capital to buy cars on behalf of its customers.
"SVB is providing an innovative and flexible debt facility that supports our specific business model," said Fair CEO and Founder Scott Painter. "Their forward-thinking approach is enabling companies like Fair to achieve scalable growth in the innovation economy and is a true blueprint for how tech companies should be able to access debt."
Fair is an app that puts the entire end-to-end process of getting a car on a customer's phone. Users scan their license to shop pre-owned cars with all-in monthly payments they can afford, sign for the one they want with their finger, pick up their keys and drive it for as long as they want—with no long-term commitment or even physical paperwork.
"SVB is eager to support companies offering disruptive solutions in industries undergoing transformative change," said Zhengyuan Lu, Managing Director and head of SVB's Warehouse Financing Group. "Fair is helping create the new mobility economy and Car-as-a-Service model, and we are thrilled to help propel its growth globally."
Since launching in August 2017, Fair has provided cars for more than 20,000 users through its 3,000 dealer partners in 26 markets across the United States. It also has a nearly year-old partnership with Uber that allows potential rideshare drivers to access Fair right in the Uber app. They can pick the car they want, pay for it on a weekly basis as they use it for Uber rides, and walk away whenever they want.
"Just as Fair offers a transformative experience to consumers and its dealer partners, it represents a compelling and industry-defining opportunity for investors and debt providers alike," said Fair Chairman and Co-Founder Georg Bauer. "We are gratified to have a forward-looking partner like SVB, which is solidifying its reputation for helping unleash big, new-economy ideas in technology."
Fair offers a new way to get a car that responds to consumer demand for more freedom. Fair gives customers the flexibility to drive the car they want for as long as they want and lets them walk away any time, eliminating the long-term commitment of traditional financing or leasing. Fair allows you to select your car, miles and view your payments—all in a mobile and paperless end-to-end experience that's simple, transparent and affordable. Fair is headquartered in Santa Monica, California. For more information, please visit www.fair.com and follow them at @fairtheapp.
About Silicon Valley Bank
For more than 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at www.svb.com.