Whitecar, a UK-based new rental car brand, has successfully secured its initial £650,000 equity crowdfunding target through Crowdcube. The company originally sought to raise £850,000 but has decided to lower the funding goal after closing funds through a subscription that cannot be reflected on the Crowdcube progress bar.
As previously reported, White Car describes itself as UK’s leading new car rental brand, notably offers only white Tesla car in Heathrow, Gatwick, Manchester, and Edinburgh airports.
“Whitecar opened at Heathrow in July 2016 with 5 Tesla Model S cars and set out to prove the business case. With 1,828 customers, two of which have become investors and directors, experience proved that there is an opportunity to create significant value for shareholders by expanding the concept across European airports. 3 more airport outlets followed during 2017; Manchester, Edinburgh and Gatwick and the company is ready to scale.”
The company also reported since starting with 5 Tesla 90D’s, it has grown to a fleet of 15 cars and intends to expand to over 900 cars and operate from at least 30 hubs in the UK and Europe by 2022. Current price for rentals £149 per day and is projected to change to £129 post-funding round. The company also noted that it currently has a revenue run rate of £600,000 per year (year 1 loss projection of £800,000).
Funds from the Crowdcube campaign will be used to rollout additional hubs across the UK and Europe. This will include Dublin, Oslo, Frankfurt, Geneva, Madrid, Malaga, and Zurich. White Car added:
“We can open new outlets cheaply and low overheads mean the directors believe that, on current assumptions, the company does not require further equity capital before exit.”
The campaign is currently set to close next Wednesday.
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