Australian subscription mobility platform Loopit successfully raised $A3.6 million in its first external capital raise which will accelerate the company’s global expansion and technology innovation, and particularly its interest in the growing link between electric vehicles and car subscription offers.
Loopit is the brainchild of Australian brothers Michael and Paul Higgins, several years on from the launch of HelloCars, Australia’s first online-only car dealership, which also launched a subscription service in 2019.
This led to the birth of Loopit, a car subscription platform that now provides software to help automakers, car dealerships, fleet rental companies, and start-ups introduce car subscription offerings to their own customers.
The $A3.6 million raised is Loopit’s first external capital raise and will accelerate the company’s growth across its current markets in Australia, New Zealand, and the United Kingdom, and beyond.
“The move toward more flexible car ownership alternatives has never been greater,” said Michael Higgins, co-founder and managing director at Loopit.
“Our data shows that almost a quarter (24%) of people today no longer own a car, and a massive 81% of people would consider a car subscription for their next car rather than buy it outright.
“This presents a massive opportunity for the car subscription model, which is rapidly gaining momentum both here in Australia and around the world.”
But there is more to what Loopit is seeing other than simply a shift in car ownership, with a trending preference towards electric vehicles predominant in those looking for alternatives to traditional car ownership.
“We are also seeing a strong link between the uptake of electric vehicles and car subscription,” Higgins continued.
“Our research shows that the majority of future EV adopters (77%) prefer to subscribe rather than buy a car. Many consumers remain uncertain about the practicality of EV ownership, and car subscription offers a low-risk way to experience EVs without the commitment, so they can try before they buy.”
Loopit expanded from Australia to New Zealand in 2021 and then into the United Kingdom in 2022, and currently powers the majority of car subscription providers across Australia and New Zealand.
This first external capital raise was led by seed-first venture capital firm Tidal Ventures, which invests in Australian and New Zealand businesses on the verge of international expansion.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.