The Spanish Tourism Ministry is one of a number of backers for MyTripCar in its latest capital-raising efforts for "transparent" web car rental.
The Spain-based startup (TLabs here) has attracted a number of other unnamed investors from its domestic market and the UK in the €1.2 million round announced this week.
The investment will be used to bolster its programme of expansion to European destinations and target travellers arriving on the continent from US and Asia markets.
Spain's Tourism Ministry uses a fund known as Segittur to back up and coming new businesses in the sector.
The company claims to have reached the 30,000-mark in the number of reservations processed since launching in 2016.
It currently has vehicles for rent in 3,000 destinations across Europe.
Since launch, MyTripCar's core proposition has been around showing every cost associated with a product at the beginning of a search, rather than adding bits and pieces as the user moves through the booking process.
It previously raised a €400,000 seed round from from Telco giant Telefonica (through its startup accelerator, Wayra), several business angels and from its most recent backer, Spain’s Tourism Ministry.