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- Kyte, a startup that delivers rental cars to customers, just raised $200 million in debt funding.
- The investment was led by Goldman Sachs and Ares Global Management.
- Insider got an exclusive look at the 10-slide pitch deck Kyte used to raise the fresh funds.
Car rental startup Kyte has raised $200 million in debt financing from Wall Street giant Goldman Sachs and California-based asset manager Ares Global as it seeks to expand its fleet.
The San Francisco-based startup, which was founded in 2019, delivers cars to customers and picks them up via an app in a bid to circumvent the “inconvenience” of car ownership, car rental and services traditional car rental.
The company ultimately aims to operate a fleet of fully autonomous vehicles that can deliver and drive themselves to consumers.
Kyte is one of a batch of startups that offer the ability to rent cars through an app. Boston-based Zipcar has been operating in the space since 2000 before its acquisition by Avis in 2013. Elsewhere, the California app Turo has a range of top backersincluding NFL player Larry Fitzgerald.
Ludwig Schoenack, co-founder of Kyte, said the company is bringing cars to people living in cities by creating a “real business with real real-world assets”.
“To do it right, we needed a debt capital provider who shared our ambitious vision and could put real money into it,” he said. “Goldman and Ares’ credit facility will catalyze our growth as we move into the future of transportation.”
The company believes the “on-demand” model that has taken hold in other industries such as grocery delivery and restaurants can also be applied to the automotive industry.
Kyte’s fundraiser comes as the auto industry recovers from the COVID-19 pandemic, which has hit it with delays in semiconductor shipments that have in turn led to car shortages for drivers. rental services.
In one interview with Forbes in December, Schoenack said traditional rental car operators were hit by “supply chain disruptions” over the holidays, when demand for cars was high.
Check out the 10-slide pitch deck Kyte used to raise the fresh funds below:
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