Spain's Bipi raises 16.5 million in a financing round as car sales decline

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The Spanish car and motorcycle subscription website Bipi has closed a €16.5 million financing round, the second part of which has been led by the Italian fund P101 through its second fund P102 and the ITALIA 500 fund, according to what the startup has told Business Insider Spain. This Thursday Bipi explained that it has raised 6 million euros in addition to the Series B round whose first part took place in October, when it raised 10.5 million and was led by Adevinta Ventures, with the participation of Toyota Al Ventures and the communication group Atresmedia.

With this money, the startup seeks to grow in the market; expand to Italy and establish itself in France, where it has been present since the end of 2020, and double its team in the technology and product areas, reaching around 150 people on staff for the remainder of the year (right now there are about 100 workers). In total, Bipi has raised 26.5 million euros in 3 years.

“While international vehicle sales are really worrying, with declines of 40-60%, we are growing more than ever,” says Bipi CEO and co-founder Hans Christ, in an interview with Business Insider Spain. Christ believes that the coronavirus pandemic has “accelerated consumer digital adoption” and that this is a trend that is set to become even more entrenched.

An electric scooter for 99 euros a month: Bipi is taking on ‘sharing’ by launching the first flat rate to these vehicles in the country

“With COVID we have realized that we don’t like to be tied to things.”

“With COVID we have realized that we don’t like to be tied to things, and to buy a car you have to be tied to many things,” Christ values, recalling that even today 99% of car purchases are carried out physically and that “there are no” websites for that, which leaves a “brutal” opportunity for companies like Bipi, especially now, at a time when “people are not going to dealerships.”

The Spanish technology company seeks to position itself with its car and motorcycle subscription model as an alternative to the traditional purchase of a vehicle, a “tedious process that takes between 4 and 6 weeks,” according to its CEO. Thus, it wants to be an “Amazon of car sales” or a Netflix of vehicles, since on its website you can get in about 2 minutes a car from about 250 euros per month or a motorcycle from 99 euros per month, approximately (and depending on the time for which it is contracted).

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As for the vehicles available, Bipi considers itself a “multi-brand and multi-segment” website because you can find “from a Mercedes to a Tesla”, among many other models, depending on the customer’s needs. Likewise, a car can be hired for a month or for 3 or 4 years, although the CEO points out that 60% of its customers hire vehicles for 12 months or longer.

In addition to leasing for individuals, or car subscriptions such as Netflix, Bipi also offers a “car check” for companies, so that companies can pay for cars for their employees to use in their personal lives, a benefit similar to when companies offer discounts to access daycare or medical services. Companies such as Techedge and Capital Energy are currently using this service.

Bipi expects to be profitable next year. The company has declined to share with Business Insider Spain its turnover and annual losses but has pointed out that since last May its revenues have grown by 200% per month, and that it is forecast to reach more than 25 million euros in sales in the next two years.

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