Getaround Nabs $25M Debt Round
Just on the heels of closing a $140 million Series E fundraise in October, peer-to-peer car rentals company Getaround has announced that it’s raised a top-up of $25 million in debt financing from Horizon, which is a publicly-traded finance company that specializes in providing loans for venture-backed companies. The debt round together with the recent Series E will go towards expanding Getaround’s business.
Getaround has notably seen a turnaround after the earlier months of the coronavirus pandemic plunged down its business reportedly to the brink of bankruptcy. Before then, the company had raised about $400 million in outside funding, the majority of that from a $300 million Series D round led by SoftBank in August 2018.
In the earlier months of the pandemic, Getaround had two rounds of lay-offs, affecting 150 employees in January and a further 100 in March. The company’s workforce was cut by nearly half to approximately 300. Later on, Getaround’s business slowly recovered and saw the company land $140 million in Series E funding from a group of investors including existing backer SoftBank, Reinvent Capital, Menlo Ventures, Cathay Innovation, and Nikola Corp Chairman Steve Girsky.
Now, Getaround has topped up its recent $140 million equity round with $25 million in debt. The company will use the new financing to grow its business which is currently present in over 300 cities across the US and Europe.