Car insurance to loans FTSE 100 group, Admiral, has made its first strategic investment by taking a minority equity stake in leading vehicle subscription venture Wagonex.
Fast-expanding and Cardiff-based Wagonex , which was launched in 2016, has pioneered a subscription platform for vehicle manufacturers and retailers. It works with partners such as Renault Trucks and the latest subscription brand to the market, mycardirect. It has also launched a number of white label platforms for brands such as Volkswagen’s CUPRA, as suppliers look to capitalise on consumer demand.
The investment, which will support Wagonex’s growth plans, has been made through Admiral’s venture company, Admiral Pioneer. The value of the investment and the equity position has not been disclosed.
Wagonex has experienced a 120% year-on-year growth rate with its consumer facing subscription offer gaining significant market traction. Over the last 18 months the firm has doubled the size of its team with recruitment set to continue over the next 18. The car subscription market is forecast to be worth $30bn by globally by 2030. Wagonex has designs on a global customer base.
The investment by Admiral is part of its diversification strategy as it enhances its digital proposition and expands into new mobility trends. It will also provide the group with insight into the specific insurance needs of vehicles provided to customers on a subscription basis. Admiral Pioneer has already launched short-term car insurance and insurance for tradespeople in the UK and fleet insurance for SMEs in France.
Emma Huntington, chief executive Admiral Pioneer, added: “Our aim is to support long-term diversification by identifying new markets and ventures where our existing strengths and knowledge give us a competitive advantage.
“We believe that Wagonex’s best-in-class technology and strong position in the rapidly expanding car subscription market makes it a perfect fit for our first strategic investment. We look forward to working closely with Toby and the team as they continue to expand Wagonex in the UK and beyond.”
Toby Kernon, founder and chief executive of Wagonex, said: “We’re delighted that Admiral Pioneer has chosen Wagonex as its first strategic investment. This not only demonstrates the strength of our business and technology but also the exciting market opportunity with the car subscription market predicted to be valued at up to $30bn globally by 2030.
“This will allow us to build on our strong UK position and continue to play a leading role in this rapidly growing market, which is changing how the world drives and owns vehicles.”
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