Press Release
FlexClub secures $5m funding to scale its unique car subscription marketplace
FlexClub Founders; Tinashe Ruzane, Marlon Gallardo and Rudolf Vavruch (Source: JNPR)
As consumer behaviour has been reshaped by the Covid-19 pandemic, e-commerce has fast become the new ‘high street’, with customers now buying everything from groceries and medicine to electronics and even houses all online. While vehicle purchases are not excluded from these quickly shifting consumer preferences for online retail, the traditional process of buying, insuring and financing a car still remains a major challenge to building a simple digital car shopping experience, given the multiple parties required for the transaction – until FlexClub arrived that is.
Established in 2019, by co-founders Marlon Gallardo, Rudolf Vavruch and Tinashe Ruzane, FlexClub is an online marketplace that connects customers looking for flexible access to long-term cars with its partners offering car subscriptions. FlexClub’s innovative rewards technology enhances the experience for its members, while reducing risk for its partners.
Through this technology, FlexClub is able to assess the risk profile of its members using several alternative data sources and rewards its members for responsible vehicle usage.
Since it collaborated with Uber in Mexico and South Africa in 2019, helping their community of drivers subscribe for cars that become cheaper to purchase every month through rewards, the FlexClub model of all inclusive car subscriptions has gained significant traction. Their unique car subscription marketplace is now also being extended to retail consumers, who are also rewarded for safer driving while subscribing for the vehicle thanks to their ‘Club Rewards Program’.
And it’s not just prospective vehicle buyers who love the FlexClub approach; several leading global tech investors are recognising the value and scalability of the model, which resulted in FlexClub attracting a further US$5 million in equity and debt funding in 2020, significantly bolstering the $US1.2 million it had already raised in 2019.
According to FlexClub co-founder and CEO, Tinashe Ruzane, their latest fundraising round, led by Kindred Ventures, early backers of global technology businesses such as Uber, Postmates, Virgin Hyperloop and Coinbase, demonstrates the recognition by some of the world’s foremost venture investors of the potential for the FlexClub model and the confidence in the strength of its leadership team deeply experienced in mobility.
“With seasoned and highly respected VC investors like Kindred Ventures, CRE Venture Capital and Endeavor getting behind our mission, we’re well placed to usher in the future of how people get cars in markets like Mexico and South Africa” Ruzane says, “and the support from prominent angel investors, like Matt Mullenweg (founder of WordPress), Federico Ranero (COO of KAVAK), Tariq Zaid (formerly of Shopify and Getaround) and Ron Pragides (formerly of Twitter and Salesforce), further validates the incredible global opportunity for our technology to reimagine commerce in the automotive industry.”
Accordingto Ruzane, the expected transformation of how people acquire their vehicles is not unlike the evolution that happened over the past decade in other consumer sectors such as music retail.
“10 years ago, most people would struggle to imagine a world in which CDs were not the dominant driver of music industry revenues,” he explains, “but today, thanks to the likes of Spotify and Apple Music, streaming accounts for more than 80% of all music revenues generated in the U.S. The industry successfully transitioned from product-led distribution to service-led distribution.” Ruzane is adamant that car subscriptions will drive the same radical transformation of the automotive industry distribution model and he believes that the early traction found by FlexClub with its unique car subscription marketplace points to a much larger opportunity to catalyze this transformation for its partners and members.
“Our partners recognise the opportunity to work with FlexClub to look beyond just driving unit sales of vehicles and transition towards building deeper relationships with customers through this service-driven approach. All while diversifying away from the reliance the auto industry now has on consumer vehicle financing to drive revenue,” he explains, “and the buy-in we have seen from partners like Avis and other major automotive distributors, demonstrates that car subscriptions are finally emerging into the automotive zeitgeist.”
Ruzanesays that FlexClub’s partners are quite diverse, ranging from small fleet owners to multinational fleet operators looking to easily launch car subscription offers on the FlexClub marketplace without requiring significant investment in new technology, infrastructure or operations. Just two years ago, FlexClub’s partners were predominantly individuals looking to earn passive income from owning one or two cars offered on subscription to members. A year ago, private debt funds entered the scene with an interest in the yield opportunity from funding car subscription fleets. Today, partners on FlexClub also include major brands like Avis with tens of thousands of vehicles in their fleet and the operational wherewithal to scale across multiple cities on the FlexClub marketplace.
“Our members are drawn to the fact that, in just a few clicks, they can get flexible access to a car that suits their needs in under a week. Members can choose vehicles from an array of reputable partners, without the need for large upfront deposits, high balloon payment obligations, or rigid long-term vehicle finance contracts; and they always have the freedom to buy the car, return it, or swap it at any time, without incurring any penalties or unexpected costs.”
“By enhancing and simplifying the car shopping experience for our members, and better managing the risk for our partners, FlexClub is supporting the redesign of the auto commerce landscape,” Ruzane concludes, “and we firmly believe that car subscriptions will be one of the fastest-growing segments of automotive retail over the next decade, especially as a growing number of car rental groups, car manufacturers, car dealer groups, leasing companies and even vehicle financiers start to invest more meaningfully in launching their own car subscription offers across the globe. FlexClub is a powerful bridge between the fleets our partners control and the digital car shopping experienceo our members desire.”
The Gender Mainstreaming Programme 2024 organized by the Nigeria Climate Innovation Centre aimed to close the gender gap in climate entrepreneurship. NCIC achieves this objective by collaborating with industry players, and stakeholders to drive and gain support for women in the industry, across Nigeria and the world at large. WeClimeEquallyWorkshop and the G-FIVE Business Accelerator by NCIC are the two instruments the organization uses to foster gender equality and climate-focused entrepreneurship.
The Gender and Climate Workshop Event
This Year’s WeClimeEquallyWorkshop 2024 with the theme: Equity and Sustainability Towards a Prosperous Future was held on Thursday 21, March 2024 at Four Points by Sheraton. The welcome address was led by Mr. Adamu, the Chief Operating Officer who represented Bankole Oloruntoba, the Chief Executive Officer, of NCIC. He emphasized the work of NCIC in championing projects that drive gender equality and entrepreneurship.
Mrs. Titi Oshodi, Special Adviser to the Lagos State Governor on Climate Change and Circular Economy rendered the Goodwill Message and raised the need for effective communication to spur the needed change as there are many communication nuances in the Nigerian landscape. Rendering the speech of His Excellency Babajide Sanwolu, Governor of Lagos state, Mrs. Oshodi plauded that the WeClimEqualityWorkshop provides a pivotal platform to exchange knowledge and amplify women’s voices and ensure their meaningful participation in climate and circular economy because there is a link between gender, women, and marginalization is essential.
The workshop also featured 4 expert paper presentations delivered by industry experts from KPMG, FC4SLagos, Fate Foundation, and academia. In addition, attendees were treated to an intriguing panel session on applying a gender lens to the triple Es of Employment, Environment, and Entrepreneurship. Following hours of interactions, attendees were allowed an opportunity to co-create practical strategies to infuse gender lens in organizational programming, policies, and framework.
Green Females in Venture Enterprise Business Accelerator
Building on some key outcomes of the #WeClimeEqually Workshop, 50 climate-focused women entrepreneurs entered a 4-day hybrid business accelerator program delivered in partnership with the Lagos Business School Sustainability Center. Core modules of the accelerator centered around sustainability, innovation, legal regulatory frameworks, business management, and grant writing amongst others.
Additional program support included a nursery for mothers, accommodation, a virtual learning platform for long-distance learners, and bonding activities. Participants were also certified at the end of the program. The Gender Mainstreaming for Climate Entrepreneurship is sponsored by Climate KIC; Europe’s leading Climate Innovation and Irish Aid. To learn more about the Nigeria Climate Innovation Center Visit the website here https://nigeriacic.org/about-us/
AFEX Management (Image: Supplied).
AFEX, Africa’s leading commodities market player, announced that it has secured a place in the Financial Times (FT) ranking of Africa’s Fastest-Growing Companies in 2024. Coming in at Number 5 this year, this marks the organization’s 3rd consecutive entry on the list, after ranking as the fastest growing company in Africa in 2023.
The Financial Times, in partnership with Statista, recognizes Africa’s most exciting businesses through the Fastest Growing Companies ranking, celebrating thriving businesses with exceptional revenue growth. The list ranks African companies by their compound annual growth rate (CAGR) in revenue for 2019 and 2022. In that period, AFEX grew by 287.82% in the 4-year period, despite still felt effects of COVID-19, macroeconomic headwinds and market upheavals caused by uncertain policy environments and increasing natural disasters/ climate change effects witnessed in its existing markets of Nigeria, Kenya and Uganda.
Since 2019, AFEX has been working across Africa, creating an efficient market for commodities trading and solving food insecurity by driving financing from the Nigerian Capital markets and retail investors. In 2020, the launch of their digital trading platform, ComX, lowered barriers for commodity trading and alternative investments, while providing transparent financing options for the currently fragmented agriculture value chain. Through innovative financial instruments like the FETC and Asset Backed Commercial Papers which have historically performed well, AFEX is creating the infrastructure to boost agriculture production across Africa.
Akinyinka Akintunde, President/CEO, AFEX Nigeria said “We are proud to once again be featured on the Fastest growing companies list for the third time in a row. This year’s entry is perhaps more significant for us considering the harsh market environment that a lot of businesses are undoubtedly contending with. This is a testament to all the work we have put in over the past few years to ensure Africa’s food self-sufficiency. Our expansion into Cote d’Ivoire this year also mirrors our commitment to our strategic expansion plan, Project Black Panther, which sees us replicating our business model in 9 African countries in the next decade to improve cross border trade on the continent”.
Today, AFEX has impacted the lives of over 500,000 farmers across 4 countries, while prioritizing creating a positive and lasting difference in their communities. Ultimately, AFEX is empowering local farming communities, fostering economic opportunities, and contributing to Africa’s sustainable self-sufficiency as the company prioritizes its impact goals.
LCH Consultancy & Associates Evelyn Wangui (Image: Supplied).
LCH Consultancy & Associates, an integrated advisory and strategic corporate communications agency focused on African development, is delighted to announce the appointment of Evelyn Wangui as the newest addition to its growing team to support the agency’s expanding global client portfolio. With over ten years of experience in strategic public relations, Evelyne brings a wealth of knowledge and expertise to LCH Consultancy & Associates. As Director of Content and Media Relations, she will be pivotal in strengthening strategic services across the African region.
During her career, Evelyne has represented many multinational organisations from various industries, operating in both corporate and developmental spheres. She was educated in Kenya, studying journalism and political science at Nairobi University.
Commenting on her appointment, Evelyne said, “I am delighted to join this talented team of inspirational and highly motivated peers. This marks an exciting milestone in my profession. I look forward to innovating and executing new forms of corporate communications blended with business advisory.”
Lydia-Claire Halliday, Founder and Executive Director of LCH Consultancy & Associates, welcomed Evelyne. She noted that her entry aligns with the agency’s ongoing commitment to attract unique talent for continued world-class client support. “With this growing talent pool, I am confident that our clients will benefit from unparalleled communications and stakeholder relations support. We encourage both collaboration and intrapreneurship, which paves the way for our team’s development and success.”
LCH Consultancy was launched in 2012 to bridge the global knowledge gap by representing Africa and the corporations, organisations and people vested in its empowerment and equitable development. In 2023, the company officially rebranded as LCH Consultancy & Associates, representing the vital contribution of colleagues.
The agency specialises in three core areas:
- Investor Relations – supporting capital and debt raising while maintaining the perception of value across the global investment community. In this role, LCH Consultancy & Associates advises on price-sensitive commercial developments and business strategies to local and global audiences.
- Corporate Communications – developing and executing communications plans that strengthen relationships with the media, public, industry, regulatory, and government stakeholders.
- Strategic Business Advisory – providing unique intelligence, analysis, and insights to clients distinguished by a deep understanding of the opportunities present in Africa. This service has been instrumental in enabling clients to make informed decisions regarding their business development and identify partnerships and strategic alliances.
