European on-demand car service Virtuo raises $96M

Paris-based Virtuo, a startup positioning itself as an alternative to car ownership, has raised $96 million in a combination of Series C financing of $60 million and pan-European asset-based financing of $36 million.

The Series C round was led by AXA Venture Partners with participation from Bpifrance, Alpha Intelligence Capital and H14 along with existing investors Balderton Capital, Iris Capital and Raise Ventures. The asset-based financing comes from Natixis and several members of the Banque Populaire and Caisse d’Epargne Group.

Founded in 2016, Virtuo’s last equity round came in 2019 and, together with this funding, brings total equity raised to nearly $100 million.

Virtuo says the new funding will be invested in development of its technology and to “launch innovative new services that will position its car on-demand service as a key alternative to car ownership.” The company also plans to accelerate expansion across Europe and grow its fleet of electric vehicles.

Virtuo customers book and access their vehicles using the supplier’s mobile app, with supply currently available in cities in France, Spain and the United Kingdom. The company is also launching a vehicle delivery service, currently available in London, Paris and Madrid. 

“Our ambition for Virtuo and our car on-demand service is to reinvent our relationship with cars, to provide all the benefits that cars can offer while using technology to remove the physical burden,” says Karim Kaddoura, Virtuo’s co-founder. 

“We believe you should be able to access a car the same way you stream music or films: the car should appear on demand when you need it but disappear from sight when you don’t.”

Virtuo plans to expand to Milan later this month and Germany by 2022. The startup is also aiming to have 50% of its fleet electric by 2025 and 100% electric by 2030.

“The company offers a true alternative to owning private cars for city dwellers who wish to use more sustainable shared mobility solutions. Born in the digital era, Virtuo’s 100% digital experience is backed by powerful technology and artificial intelligence to optimize its operations. We are convinced that the mobility of tomorrow must be built with strong technology at its core, addressing new behaviors and with the freedom of choice of a multimodal offer,” says Caroline Lebel of Bpifrance.