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    • Companies Opting for Flexible Car Subscriptions

    FINN Shows Strong Growth in Fleet Business


    FINN's growth driver is the B2B business

    • Annual recurring revenue (ARR) of B2C and B2B business >€160M in 4 years.

    • B2B fleet business drives growth, generates >45 percent of total annual sales.

    • FINN supplies vehicles to more than 2,500 commercial customers in total.

    • Expansion of enterprise business to be accelerated with a dedicated team.

    Munich, October 30th, 2023 – Munich-based car subscription provider FINN reports a strong growth in its fleet business in the third quarter. Commercial subscriptions now generate 45 percent of the startup's annual recurring revenue (ARR) and totals more than 72 million Euros.

    Business with medium-sized and large fleet customers in particular is flourishing, with commercial customers having 50 or more vehicles in their fleets are generating the strongest growth. With a fivefold increase compared with the prior-year period, ARR has now tripled for commercial customers with fleet sizes between 10 and 49 vehicles. The customer segment with commercial fleets of up to nine vehicles also contributed with 2x growth figures.

    “Land and Expand” strategy successful
    In total, FINN supplies vehicles to around 2,500 commercial customers - including many craft businesses, publishers and service companies, such as large IT groups. Most of the growth came from existing customers. The Munich-based company, which was only founded in 2019, has successfully proven "land and expand" strategy, which involves gradually converting ever larger parts of the fleet of commercial customers to FINN's flexible subscription model. More than 80 percent of the new subscriptions are sold to existing customers.

    "Many commercial customers first try out a car subscription as a new form of procurement in the fleet sector. When they find that the subscription is much more flexible and requires less internal administrative effort, fleet managers gradually start converting their entire fleet to the subscription model," says Jan Hansen, Senior Vice President Growth, B2B, at FINN. He believes that subscription, with its flexibility and simplicity, offers many important competitive advantages.

    Companies that subscribe to fleet vehicles through FINN benefit in several ways. For example, thanks to the shorter length contracts, they do not have to make unnecessarily long commitments, and fleet management is significantly simplified via the dedicated administration portal.

    Mobility shift as a growth driver
    "Currently, companies want more flexibility with their fleets for two reasons. First, they want to have the flexibility to adjust their fleet size to match economic developments. FINN’s full-service approach reduces the administrative effort and mitigates the financial risks of over- or understocking. On the other hand, companies need to achieve certain CO2 emission reduction goals. With our help, it is possible to quickly electrify the fleet and drive decarbonization without having to take on additional residual value risk," says CEO and co-founder Maximilian Wühr, adding, "We expect subscriptions to hold a significant market share in the fleet business going forward."

    FINN is also benefiting from increasing new commercial registrations. Despite a weakening economy, new commercial passenger car registrations in Germany grew by 19.9 percent in the first half of 2023 compared to the same period last year, according to the Federal Motor Transport Authority. The popularity of new mobility solutions was also driven by vehicle rental companies registrations, which increased by 39.6 percent, many of whom also offer subscription options.

    FINN expands into enterprise segment and forms a dedicated team
    The car subscription provider FINN sees great potential in the enterprise segment and in fleets with over 200 vehicles. In Germany alone, the company expects annualized revenue potential (ARR) of almost 500 million euros. FINN already serves 10 percent of the fleets of large companies in Germany. A dedicated team is now formed to provide a full-service approach and make fleet management operationally even more efficient.

    "With the newly created Enterprise Team, personal contact persons are available to our major customers. We analyze the company's needs and jointly develop use cases for the subscription. We then provide support with fleet planning, vehicle selection and operational fleet management," adds Jan Hansen.

    About FINN
    FINN is the platform for climate-neutral car subscriptions. FINN makes driving a car as easy as buying shoes online: With just a few clicks, you can subscribe to a car that is immediately available - without any further effort. FINN offers an all-round carefree service and takes care of registration, vehicle taxes or even maintenance. In addition, the CO2 footprint of every kilometer driven is compensated with the support of certified projects in collaboration with South Pole. FINN was founded in Munich in 2019 and expanded to the US in 2022. The mission: drive your own car easily and sustainably with FINN.

    More information: https://www.finn.com/


    Press contact

    FINN
    Adrian Smiatek
    adrian.smiatek@finn.com