LatAm List – Vai.Car, a Brazilian car rental startup, raised an $85M (R$410M) investment round led by XP Investimentos, with contributions from previous investors BMG Captial and Bossa Nova Investimentos, to help increase its vehicle fleet.
The startup allows users to rent vehicles for a fixed time period, such as a week or a month, through the online app. The rental service includes delivery of the vehicle to the customer’s door and an insurance policy, and uses face recognition technology to validate the user’s identity and prevent fraud.
Vai.Car is targeting the market of younger users for whom a pay-per-use business model for expensive goods such as vehicles is more practical. Instead of taking out a large loan in order to buy a car, customers can rent a car for a set amount of time at an affordable price.
The startup also offers discounts to Uber drivers, allowing those who cannot afford to buy their own car to still work for the many transport apps operating in Latin America, such as Uber and 99.
With the most recent investment, the company aims to grow its fleet of vehicles to 25,000 within the next 18 months.
Read more on Auto Rental News.
