On-demand car rental startup Kyte raises $60M for expansion

Following $200 million in funding in March of this year , on-demand car rental company Kyte has closed a $60 million Series B round to become “the world’s largest operator of electrified fleets,” the company says.

Leading the growth equity financing was InterAlpen Partners, whose founder, Stephen George, an early investor in Tesla and SpaceX, is joining Kyte’s board. Other new investors include Valor Equity Partners, Anthemis, Citi Ventures and Hearst Ventures, with significant participation from existing investors DN Capital plus 1984 Ventures, FJ Labs and Urban Innovation Fund.

Founded in 2019, the Kyte app lets customers book a car for a day, multiple days, weeks or months. Customers select a time and location for vehicle delivery, and the company dispatches a delivery driver, known as a Kyte Surfer, to deliver a car.

With the funding, Kyte will accelerate product development, triple its fleet and expand in new and existing markets. Kyte says it has experienced 5x growth since its Series A in 2021 and plans to expand into new product categories and add new vehicle classes, including growing its electric vehicle fleet and supporting its long-term goal of teleoperated and fully autonomous trip options.

“At Kyte, we envision a world where people can go anywhere, whenever they want, at the click of a button. Since inception in 2019, we have transformed that concept into a reality and have measurably changed how tens of thousands of people travel each month. This fundraise will allow us to build out our operational platform and best-in-class consumer experience,” says co-founders Nikolaus Volk and Ludwig Schoenack.

“We’re committed to becoming a leader in the transportation space - on-demand car delivery is just the beginning of Kyte’s journey. This financing will better position us to accomplish our long-term goal of becoming the largest operator of shared, electrified, and autonomous fleets.”

Adds George: “The team at InterAlpen Partners is looking forward to supporting Kyte’s next phase of growth and joining efforts to make a much-needed industry shift within the auto-mobility market. I am thrilled to join the company’s board and am confident the team at InterAlpen Partners will not only complement Kyte’s management and Steve Schlenker from DN Capital, but will help the team expand into additional growth and product vectors.

“Together we can work towards the overarching goal to operate the largest electric vehicle fleet on the planet and make sustainable mobility more accessible for all. As the need for a zero-emission based future steadily heightens, it will be critical to engineer a platform and a path forward that will accelerate adoption and accessibility. I believe Kyte’s innovative approach and product platform is the solution.”

Kyte currently operates in more than 14 cities. To-date, its total funding is approximately $300 million across equity and debt.