Santa Monica-based online car leasing startup Fair announced Aug. 27 it raised a $100 million credit facility led by Ally Financial Inc. to help finance its existing business and acquire cars for its users.
Fair has now raised $1 billion in debt and $500 million in equity since its 2016 founding, most recently with a $50 million credit line from Silicon Valley Bank in January. “Through this partnership, Ally provides us with a foundational strategic building block and gives us access to an important source of capital to scale our solution and meet the ever-changing needs of the modern car shopper,” Fair Chief Executive Scott Painter said in a statement.
Fair and Detroit-based Ally began working together in 2018 when Fair started to use some of Ally’s technology to manage inventory and facilitate leases, but this is Ally’s first investment in the company.
Fair’s smartphone app lets users choose and lease a car it owns and provides financing options for the lease. Users pay a monthly fee for a Fair car, which comes equipped with roadside assistance and a limited warranty. Drivers are also offered Fair’s auto insurance coverage up to a $500 deductible for an additional $115 per month.
In December, Fair completed a $385 million Series B round led by Softbank Group Corp. Its existing investors include Moonshots Capital, based in Marina del Rey, and San Francisco-based investors Sherpa Capital and Mountain View-based BMW i Ventures.
Tech reporter Samson Amore can be reached at email@example.com or (323) 556-8335. Follow him on Twitter @samsonamore.