Revel Scores $123M to Rev Up Car Subscription Services

Spain-based startup Revel has secured a sizable €115 million ($123 million) in funding. The startup aims to redefine car ownership with its digital car subscription service—a model essentially providing a flexible lease term inclusive of insurance and maintenance costs.

Transaction Highlights:

  • Deal Value: €115 million ($123 million), a mix of debt and equity.
  • Valuation multiple: No valuation details disclosed.
  • Acquirer: Investment firms KKR and Santander Consumer Finance, among undisclosed others.
  • Target: Revel, founded in 2020 in Spain, offers an innovative car subscription model designed for consumers ready for a year-long commitment.

Revel at a Glance:

  • Capital Raised: Before this round, Revel raised a modest €750,000, primarily used for testing different business models related to car subscriptions.
  • Business Model: The subscription involves monthly payments covering insurance, maintenance, and even carbon offsetting. The service can be accessed online or via an app.
  • Subscription Flexibility: Revel allows customers to switch between car options, all part of the subscription package.
  • Market Strategy: While the startup hasn’t divulged specifics around vehicle sourcing, de Mateo insists it’s their "secret sauce."

Subscription Over Ownership?

CEO Enrique de Mateo commented that Revel emerged from an iterative approach, using initial funding to experiment with various car subscription models. The startup seems to have cracked the code, offering a model that stands out in a leasing market growing faster than traditional car sales.

Hitting the Road: What's Next for Revel

Revel’s substantial funding injection serves as more than just runway capital; it's a significant bet on the startup’s existing business model. The funds are earmarked to expand the car network and scale operations, positioning Revel for potential market dominance.

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