Kyte, a company providing on-demand car delivery, closed an asset-backed credit financing of up to $200 million from Goldman Sachs and the Ares Global Management alternative credit team to accelerate the company’s fleet growth and margin expansion. Kyte and its financing providers will create a more robust trip economy that services a more demanding customer with a shared vision of an electrified, autonomous future.
“We are building a real business with real assets in the real world. To get this right, we needed a debt capital provider that shares our ambitious vision and can put real money behind it. The credit facility from Goldman and Ares will catalyze our growth as we build towards the future of transportation,” Ludwig Schoenack, co-founder of Kyte, said. “The problem Kyte is solving is giving access to cars to people that live in cities. These cars are a core element that we wanted to get right, and we’re committed to being a leader in customer-centricity and technology-powered operational excellence.”
In recent years, customer expectations have drastically increased, as more convenient on-demand options have replaced brick and mortar incumbents in the grocery, restaurant and FMCG spaces. Building on the same set of hypotheses, Kyte is creating a more accessible solution for people to get cars on-demand and bridging the gap between elevated consumer expectations and frustrating existing experiences. An end-to-end product, Kyte is redefining transportation by delivering and retrieving cars, bypassing the inconveniences of car ownership, car leasing and the familiar hassles of traditional car rental. This paradigm shift eliminates the need to own a car to experience the benefits of individual vehicle travel.
The next 10 years will bring about a dramatic shift in vehicle sales towards electric fleets. Government investments will also trend in this direction, with the U.S. Department of Transportation putting $5 billion into EV charging networks. Taking things one step further, autonomous technology will begin to move to the forefront and, once widely available, will create even more efficient and convenient options. As a result, Kyte will regularly integrate new vehicle models into its fleet, and this funding ensures the capital to evolve with the industry while expanding upon its tech-forward product offering.
“We are excited to support Kyte in its next phase of growth,” Felix Zhang, managing director at Ares Alternative Credit, said. “With a shared vision for the future of the transportation industry, this capital solution demonstrates Ares’ focus on innovative businesses that are disrupting traditional business models.”