The debt facility, provided to a subsidiary of Fair, is designed to help the fintech startup secure vehicles for entry-level car customers who might not otherwise qualify for a traditional loan or lease.
Ally joins Fair’s list of credit providers, which include: Credit Suisse, Goldman Sachs and Silicon Valley Bank. The Ally facility and investment come on the heels of Fair’s SoftBank-led $385 million Series B last year, which included investments from Exponential Ventures, Munich Re Venture’s ERGO Fund, G Squared, Expanding Capital and CreditEase.
“This deal is the latest evidence that institutional debt markets are highly receptive to the way Fair is transforming vehicle financing,” said Georg Bauer, Fair co-founder and chairman. “It’s clear we’ll be able to continue to access the capital we need in order to connect dealers and consumers through a fully digital end-to-end experience.”
Fair gives customers the flexibility to drive the car they want for as long as they want and lets them walk away any time, eliminating the long-term commitment of traditional financing or leasing.