A
little more than a year after announcing a $100 million mega-round, we’re hearing from multiple sources that long-distance
ride-sharing platform BlaBlaCar is in the process of raising another
round with Insight Venture Partners.
Insight
Venture Partners is leading the round with a significant syndicate of business
angels. This Series D round values the company above $1 billion for the first
time. A source said that the deal has already closed.
Existing
investors include Index Ventures, Accel Partners, ISAI and Lead Edge Capital.
It seems like they are not involved in this new round.
As
a reminder, BlaBlaCar is a marketplace where you can find a driver who is
driving from one city to another and book a seat in advance. It connects people
with empty seats with riders. Drivers can make a bit of money while riders can
travel for cheap. Like Airbnb, the company takes a small cut on every ride
(currently around 15 percent).
BlaBlaCar
also has a significant network effect. The more people use it, the more rides
you will find even at the last minute, and even if you are going from a tiny
city to another tiny city. It is sometimes much more effective and cheaper than
a train ride.
Last
year when the company announced its previous round of funding, BlaBlaCar
operated in 13 countries and had 8.5 million members. It is now available in 37 countries, including in non-European countries, such as India and Mexico. The company alsoacquired its biggest competitor Carpooling.com
and its 6.5 million members.
As
BlaBlaCar needs to tweak its model a bit for every country and comply with
local regulators, it has many local offices focused on a particular market in
Madrid, Milan, Warsaw, Hamburg, London, Moscow, Istanbul, New Delhi, Budapest
and Mexico DF. That’s why the company needs a lot of cash to fuel its
aggressive expansion strategy.
While
Uber encountered a few bumps along the road in France, BlaBlaCar
doesn’t face any legal issue as it promotes a revenue sharing model, and not a
profit-seeking model — it’s like asking for your friends to pay for the gas. A
200 miles ride costs $26 on average.
India
is obviously a big potential as trains are slow and it is one of the most densely populated area in the world, but the company has been
around for much longer in Europe — and BlaBlaCar is still beating all its key
performance indicators in Europe. Growth in France, which the team considered
as a mature market, is still accelerating. And then, there is the U.S.
Every
time, I’ve asked about a potential expansion to the U.S., the company has given
me the same answer with multiple reasons why it doesn’t make sense to go the
U.S. — gas is cheap, and cities are too big and too far away from each other.
But maybe this new round will make the company change its mind.
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