Headquartered in San Francisco, Kyte, which delivers cars on-demand, has closed an asset-backed credit financing of up to $200 million. The funds came from Goldman Sachs (“Goldman”) that invested in project44 and the Ares Global Management (“Ares”) Alternative Credit Team. In 2021, the company raised $30 million in funding.
Funds utilisation
Kyte will use financing to accelerate the company’s fleet growth and margin expansion. Kyte and its financing providers will create a more robust trip economy that services a more demanding customer with a shared vision of an electrified, autonomous future.
Furthermore, the company is eyeing for its global expansion that surpasses consumer expectations. It aims to achieve this commitment through electric, shared, connected autonomous transportation.
“The credit facility from Goldman and Ares will catalyse our growth as we build towards the future of transportation,” said Ludwig Schoenack, Co-Founder of Kyte. “The problem Kyte is solving is giving access to cars to people that live in cities. These cars are a core element that we wanted to get right, and we’re committed to being a leader in customer-centricity and technology-powered operational excellence.”
“We are excited to support Kyte in its next phase of growth,” said Felix Zhang, Managing Director in Ares Alternative Credit. “With a shared vision for the future of the transportation industry, this capital solution demonstrates Ares’ focus on innovative businesses that are disrupting traditional business models.”
Dramatic shift towards EVs
This decade will mark a dramatic shift in vehicle sales towards electric fleets. Even the government investments will focus on this segment with the US DOT investing $5 billion into EV charging networks.
At this point in time, autonomous technology begins to appear in the forefront and create more efficient and convenient options. This is where Kyte becomes a pioneer as it will regularly integrate new vehicle models into its fleet.
Kyte was founded in 2019 by Nikolaus Volk, Ludwig Schoenack, and Francesco Wiedemann, and is headquartered in San Francisco. Currently, the company is operating in a dozen cities with offices in Munich and satellites across the globe.
The fleet-logistics platform lets consumers rent vehicles through their app or website. The vehicles, which are located in hubs throughout the city.
Flexible approach to mobility
The startup aims to give people better access to fewer cars and replace car ownership by offering access to cars on demand. Kyte’s solution bridges the massive gap between elevated consumer expectations and frustrating existing experiences. It redefines transportation by delivering and retrieving cars, bypassing the inconveniences of car ownership, car leasing, and the familiar hassles of traditional car rental.
This paradigm shift eliminates the need to own a car to experience the benefits of individual vehicle travel. Apparently, the approach increases vehicle utilisation and takes cars off the road for a more sustainable future. On the other hand, it also lets customers save their time and money.
How does Kyte work?
Kyte partners with car rental firms and other companies that manage fleets, allowing the startup to focus on consumers and the tech.
Users can install the Kyte mobile app on iOS or Android or use the website to book a car for a day, multiple days, multiple weeks, months, or as long as they want.
Firstly, customers have to choose a time and location for their vehicle delivery. Now, the company will dispatch a delivery driver known as a “Kyte Surfer” to deliver a clean, sanitised car at the requested time. When the vehicle is ready to be returned, a Kyte Surfer retrieves the car from the customer at the location and time they choose.
