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Karshare

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Karshare is creating a more sustainable, shared future, where owners can rent their cars to people nearby

118%
 - 
Funded 27 Jan 2021
£1,000,002 target
£1,418,445 from 676 investors
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Business overview

Location High Wycombe, United Kingdom
Social media
Website karshare.com
Sectors Travel, Leisure & Sport Digital B2C
Company number 09992443
Incorporation date 8 Feb 2016
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Investment summary

Type Equity
Valuation (pre-money) £8.5M
Equity offered 12.23%
Tax relief

EIS

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Business highlights

  • App unlock with Karshare’s keyless and contactless technology
  • Unique In-App telematics (like Fitbit) assisting great driving
  • Only car sharing community that works directly with airports*
  • Enables communities to do more with less through car sharing
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Key features

  • Secondary Market
  • Nominee investment min. £12.68 +

Idea

Introduction

The move to net zero will require 50% less cars on our roads. Car sharing will play a key role in achieving this.

Like an Airbnb for cars, Karshare connects renters with owners, giving those with cars the opportunity to earn extra income while those in need of a car can rent from their local community.

With an estimated 10 million cars parked at airports each year and 38 million vehicles parked on our streets, Karshare will unlock this huge potential fleet of vehicles - one that is unused 96% of the time - through community car sharing.

We have an extensive partner ecosystem providing owners and renters with world leading assurances and protection.

Our unique platform features telematics and keyless tech. Like Fitbit, we generate a score to help our community drive safely. Our app makes it possible for cars to be booked instantly and unlocked using facial recognition.

With a TrustScore of 4.9/5 and 852 reviews, we stand at the forefront of a new economy that puts community and our planet first.

Substantial accomplishments to date

May ‘17: Seed funding - £645,000. Investors include Founders Factory, co-founded by Brent Hoberman

Dec ‘17: Launched what was, based on market research, the UK’s first airport car sharing service, Car & Away, in partnership with Gatwick Airport.

Key partners - Allianz Insurance, OCTO Telematics, Rentalcars.com, RAC.

Mar ‘18: Car & Away is featured on BBC One Show.
Dec ‘18: Engage with 2 new UK airports.
May ‘19: £3.5m funding. Investors include David Scowsill (Advisory board Airbnb).
Aug ‘19: Estimated 1 in 50 parking customers choose Car & Away at Gatwick.

Sep ‘19: Car & Away launches at Bristol Airport.
BBC and Bristol Post among those to cover launch.

Nov ‘19: Engage with +15 EU airports.
Dec ‘19: 2nd anniversary of Gatwick, +145% growth in bookings.
Mar ‘20: Covid outbreak – Airport operations suspended.
Mar ‘20: Car & Away rebrands as Karshare.

Karshare launches a community scheme in a lockdown-inspired pivot. Car owners donate their cars for free to help mobilise front line workers.

Times, Huff Post, BBC and Evening Standard cover launch.
May ‘20: Partnership with ALD Automotive, global leader in car leasing.
Jul ‘20: 684 vehicles pledged across 5 UK cities incl. Bristol.
Aug ‘20: +9,200 free rental days arranged for key workers.

Sep ‘20: Karshare expands in Bristol. Launches keyless community car sharing service and becomes the first (based on market research) community car sharing provider in Europe to offer 100% of cars instantly bookable using keyless technology.

Oct ‘20: 70 car owners sign up for keyless solutions.
Dec ‘20: Target aim resumption of Gatwick service.

Monetisation strategy

We will only make money if we make it easy and convenient to share, and communities trust us to enable this.

Our Trust Pilot score (4.9/5) demonstrates our commitment to nurturing and servicing our sharing community. We work every day to retain this.

We make money from each rental. At home, Karshare retains a 25% commission of the car price to support our platform and service capability. Owners retain 70%. (5% VAT).

Unlike traditional car clubs, we don’t own vehicles or pay for parking spaces.

It’s common that the largest marginal cost is insurance. Karshare uses telematics and as a result we have one of the best in class insurance covers globally vs our peers.

With insurance costs low, more of the rental price goes to support higher earnings for owners and Karshare.

Karshare is best placed to nurture, grow and ultimately scale the leading community car sharing platform across the UK and beyond.

We have also recently launched the pioneering Lease and Share agreement with a leading lease company to drive further referral income.

Use of proceeds

We believe a community car sharing scheme should be centred around individuals, not fleet operators. Vehicles shared by real people means money from rentals is retained within the community, producing social and economic value.

With the funds raised, we aim to:

Expand keyless car-sharing to +4 cities.
Grow our keyless owner fleet to 2,250 cars.
Deliver >21,000 rental bookings Y/E Mar ‘22.
Relaunch airport sharing starting with Gatwick ‘Dec 20.
Generate ARR to support Series A investment discussions by Sep 21.

In addition, the funds will be used to:

Build new features incl. ratings, In-App messaging and upgrades to our driver telematics, creating incentives for our community to drive with care.

Expand our product, design and delivery team to enable faster app design and development.

Expand our on-the-ground community teams to support each city launch and develop our grassroots community growth.

Engage with and expand revenue-generating streams and partnerships.

Scale our marketing to grow acquisition and the Karshare community.

*based on market research

Key Information

Trade Creditor

The business has EUR 37,659.13 outstanding with trade creditor OTA Keys. These funds are recovered from car owner customers. The business adds the debt to their balance sheet and has a recovery plan which is structured over several months. Funds are deducted from the owner's earnings over circa 6 months.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

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Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £8,508,743

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

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When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

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If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

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Business Involvement

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

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