Car subscription provider Wagonex is seeking to bolster growth in the UK and begin expansion abroad as it begins a round of equity funding.
The company offers a subscription-based service allowing a consumer to drive a car without a long-term financial commitment.
The investment round was led by the Development Bank of Wales technology ventures team, alongside US investors and UK-based angel investors; the round is set to close after the summer.
Toby Kernon (pictured), chief executive officer and founder of Wagonex, said: “We are delighted to have the opportunity to work with such an experienced and active investment company as the Development Bank of Wales and that they recognise the potential for Wagonex. Our international investors and global client base offers an incredibly exciting opportunity to build a successful and sustainable business.
“We are very proud to be based in Wales and very pleased with our new head office at Tramshed Tech in Cardiff. With this investment we can accelerate the development of the business, expand our product suite and remain a market leading name in vehicle subscriptions.”
Dr Richard Thompson, senior investment executive in the bank’s technology ventures team, added: “Following an introduction by the Welsh Government I have worked with Toby for some time to attract this exciting business to set up its headquarters in Wales.
“Wagonex is working with some of the world’s biggest car manufacturers and as in other sectors subscription should have an important part to play in a rapidly changing world where consumers expect speedy access to products.”
Ken Skates, economy minister for the Welsh Government, said that the Development Bank of Wales has swiftly become one of the largest equity investors in the UK.
He added: “I am delighted the Welsh government and the Development Bank of Wales have been able to attract Wagonex to Wales and are now providing invaluable further investment. Through our Economic Action Plan we will continue on creating the right conditions for businesses to grow and thrive.”
Wagonex provides car subscriptions in partnership with a growing number of manufacturers. It most recently worked with PSA Finance, to provide Peugeot, Citroen, and DS brands on its platform.
