Luxe Getting $50M From Hertz At $110M Pre-Money Valuation?
Luxe is currently raising funds of tens of millions of dollars at a more than $100 million USD pre-money valuation. It is reported that the investors will be led by one of the top rental companies, which is Hertz.Advertisement
According to The Information, the deal is currently pending. The in demand valet service provider is reportedly to acquire new financing means from Hertz for additional investment funds. The fund involved might be around $50 million USD at a pre-money valuation above $110 million USD. According to Tech Crunch, one of It is also mentioned that existing investors may participate in this round.
However, it is yet to be finalized so a lot of changes can still get in between the talk. It is also revealed by their sources that the B-round, which is led by known strategic investor Hertz, has been in the works for a while now. It is said that it is close to a new round of financing last quarter but so far, it hasn’t closed yet.
Luxe is known for offering its customers on-demand parking on both a subscription and a one-off model for a specific amount. Currently the service is available in Los Angeles, New York, and San Francisco. Base on the parking reputations of these cities, it can be said that parking can be a nightmare that people willingly part with their money to be able to pay someone who will do it for them.
The subscription model option that the company offers is said to be quickly becoming one of the largest growth drivers and the valet service provider has been putting more emphasis on that. Meanwhile, unlike the subscription model, its on demand parking option has been under a lot of pressure and scrutiny.
Tech Crunch reports that despite this minor hitch in the operation, the company has been profitable in all those markets, which is why they are able to secure a new round of financing even from known strategic investors. Previously, the valet and parking service provider has managed to raise about $25.5 million USD in financing prior the current funding round.
So far though no one is commenting on the said reports; Luxe’s representative said that the company can’t comment regarding the rumors and speculations. Meanwhile no word is also heard from Hertz.