Revel, the car subscription startup from Spain, raises $123M to take its business up a gear

Key Facts

Today, a startup out of Spain called Revel is announcing €115 million ($123 million) in funding to expand its business based around one of these models: a digital car “subscription” service, essentially a flexible lease agreement that includes insurance and maintenance, aimed at consumers willing typically to commit for at least a year.
(Those tests and that business were small enough that de Mateo said he wouldn’t provide us with any sales and other figures.) It found that people liked the idea of leasing — indeed, the leasing market is growing a lot faster right now than the car sales market, fueled by startups in the space — and that in Revel’s home market of Spain, one year was a sweet spot, shorter than a typical lease of three to four years, and more economically appealing than a short-term rental.
De Mateo confirmed that Revel never buys in vehicles, but he declined to talk about where it sources them, and what the business model is around how they are subsequently leased out.
(But given there is a structured financing tranche of €100 million, that leads me to think that there is some kind of leasing arrangement between Revel and the suppliers.) The potential for a company like Revel today lies in tapping a market of consumers who still want to have their own new cars, but who might not want to buy one outright.