Mycardirect secures investment to boost car subscription business
Mycardirect has secured investment from Pario Ventures to support the growth of its car subscription business.
The AAM Group owned firm, which launched in 2020, has become one of the largest car subscription firms in Europe. It want’s to reach a target of 10,000 vehicles, in the next year.
As the market continues to expand, Mycardirect expects to build a larger customer base of private and corporate customers. Currently, fleets make up 20% of its business.
AAM Group COO, Colin Mather, said: “The flexibility of car subscription makes it highly attractive to consumers in these times of economic uncertainty. There is no long-term commitment, insurance and maintenance is included, monthly costs are known and a vehicle can be exchanged or returned as personal circumstances change.”
By leveraging the existing relationships within AAM Group, Mycardirect has been able to maintain supply from its manufacturer and dealer partners while other firms have struggled to acquire vehicles amid the ongoing semiconductor shortage.
David Murray-Hundley, CEO and founder of investment firm Pario Ventures, has joined the board. He brings experience in driving growth through diverse markets and said the next step for Mycardirect is to expand into the US market.
Murray-Hundley, said: “The car subscription space is one full of relatively young companies that face a number of challenges to grow as a business. When Pario Ventures met the AAM Group team, we knew straight away that the Mycardirect brand had the potential to expand rapidly both here in the UK and in the US market. With AAM Group’s decades of experience and impressive access to stock, combined with Pario Ventures’ decades of expertise in expanding companies into new markets such as the US, we have a strong team to success”.
Pario Ventures, formed in 2010, with offices in New York, London and Brussels, has an investment portfolio of over 75 companies worldwide and has a highly successful track record in business growth through investment.
Mycardirect has been a pioneer in the vehicle subscription market. This market continues to expand as more and more companies and private individuals discover the benefits and greater flexibility of subscription over more traditional forms of vehicle acquisition such as outright purchase or leasing.
Alliance Asset Management was re-branded in 2017 as AAM Group, to reflect the portfolio of vehicle and funding solutions offered and the organisation’s broad client base.
Picture caption: Colin Mather, AAM Group COO, on left and David Murray-Hundley, CEO and Founder of Pario Ventures on right.