Maximilian Würth took over the CEO position at the mobility startup Finn from his predecessor Max-Josef Meier last year. Finn
New electric cars are expensive, the charging infrastructure can be expanded and the used car market is developing slowly in this country. Loud Federal Motor Transport Authority (KBA), when owners changed in 2022, just 1.2 percent of the total 5.6 million vehicles had an electric drive. After all, according to KBA in 2023 around 11.4 percent more electric vehicles newly registered than last year. However, with the expiry of the environmental bonus, with which consumers were able to get government subsidies for electric cars of up to 4,500 euros until mid-December 2023, sales could decline again this year. The startup Finn operates right in the middle of this market environment.
The Munich-based company, which rents cars to consumers and companies on a subscription basis, wants to more than double its fleet of low-emission vehicles by 2028. These currently make up around 40 percent of the offering.
The startup has now raised fresh capital for this goal: Finn announced today that it has completed Series C financing for 100 million euros in equity. The round is led by sustainability-focused growth equity fund Planet First Partners from Luxembourg. In addition, existing investors once again invested in Finn. These include HV Capital, the French VC Korelya Capital, UVC Partners from Munich, the New York fund White Star Capital and Picus Capital. The financing follows a loan that the London-based investment advisor Atempo Growth made available to the startup at the end of 2023.
The new valuation puts the mobility startup at 656 million US dollars (the equivalent of 598 million euros). In conversation with Business Insider US Finn co-founder and new CEO Maximilian Wühr described the new valuation as “pretty low, but realistic”. Wühr now hopes to have a good starting point for completing future financing rounds with a higher valuation.
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The founder says in the interview that the financing process was lengthy and difficult given the tense market environment. The startup began discussions with investors last summer before the financing round was completed in November 2023. “It’s been difficult over the last year, not necessarily from a consumer and business demand perspective, but because of the interest rate environment and the broader used car market,” Wühr tells Business Insider. The CEO further explains: “It is a question of affordability for customers. We faced lower profitability and had to raise prices to offset higher interest rates, so we had to compensate in other areas, such as new financing options.”
For Wühr this meant adjusting its strategy and budget in 2023 to have more cash available. Nevertheless, the CEO emphasizes that he has achieved growth targets. Last year, the company reached the milestone of 160 million euros in annualized, i.e. average, sales (ARR). Finn did not earn the majority of this through renting cars to private customers. According to the company’s own information, the B2B fleet business is becoming the most important growth driver for the company and is now responsible for half of the ARR. According to Finn, there are currently a total of over 25,000 active subscriptions running through Finn.
After allegations against Meier: Wühr took over the CEO position in May 2023
Since it was founded in 2019, customers have been able to order a car from the startup and rent it for between six and twelve months. The range includes hundreds of models from over 30 brands, from small cars such as the Fiat 500 to BMW’s luxury SUV. When taking out their subscription, customers specify how many free kilometers their monthly package should contain. The price also includes costs for vehicle insurance, financing, registration registration, taxes, repair and maintenance services and, in some cases, wall boxes for electric cars. Depending on the model, vehicle size and term, the monthly tariffs range between just under 400 euros and over 2,000 euros. Corporate customers, such as those in the consulting industry or the healthcare sector, use the rental service to build a fleet of vehicles for their employees. In 2022, Finn expanded to the East Coast of the United States.
The company now wants to continue to grow in its core markets of the USA and Germany and is also targeting expansion in Europe. Wühr also plans to use part of the financial injection to further expand his team and improve services, for example in the area of claims processing. Wühr, who was previously Chief Growth Officer at Finn and led the expansion into the US, took over the CEO post from co-founder Max-Josef Meier in May 2023. He left the company last year following allegations of sexual harassment. The Munich public prosecutor’s office was investigating him.
You can see here how Wühr was able to convince investors of a cash injection of millions despite the poor market environment. You can also find more exciting pitch decks on our topic page.