Tuesday, August 27, 2019

Fair Raises $100M In Debt Facility, Equity Investment

Santa Monica-based Fair, which operates a vehicle subscription service that lets users subscribe to gain access to cars without the restrictions of a traditional lease, has raised $100M in a combined debt facility and equity investment, the company said this morning. The debt facility was provided by Ally Financial. Details on the equity portion were not announced. According to Fair, the funding will help the company secure vehicles for entry-level car customers who might not otherwise qualify for a traditional loan or lease. Fair is led by automotive and startup veteran Scott Painter. Fair has been in a strategic alliance with Ally Financial since 2018, where Fair is using Ally's digital financing platform Clearlane to manage vehicle inventory, and is also using Ally's auto auction tool, SmartAuction, to acquire and remarket vehicles. Fair's equity backers include Softbank, Exponential Ventures, Munich Re Venture’s ERGO Fund, G Squared, Expanding Capital and CreditEase, and it last raised equity in the amount of $385M in its Series B last year; the company also has debt from Credit Suisse, Goldman Sachs and Silicon Valley Bank.