Fair closes $ 100 million debt facility and equity investment from Ally

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SANTA MONICA, California, August 27, 2019 / PRNewswire / – Vehicle subscription application Fair today announced the closure of a $ 100 million loan facility and an equity investment as part of its expanding relationship with Ally Financial. The borrowing facility, provided by Allied bank at a subsidiary of Fair, is designed to help the fintech start-up secure vehicles for entry-level automotive customers who might otherwise not qualify for a traditional loan or lease.

Ally joins Fair’s list of credit providers, which includes: Credit Suisse, Goldman Sachs and Silicon Valley Bank. Ally’s installation and investment follows Fair’s SoftBank initiative $ 385 million Series B last year, which included investments from Exponential Ventures, Munich’s ERGO fund Re Venture, G Squared, Expanding Capital and CreditEase.

Fair and Ally initiated a strategic alliance in 2018 that includes Fair using Ally’s SmartAuction and Clearlane tools to manage vehicle inventory and provide customers with access to an alternative to traditional financing channels. As part of its pilot program in Southern california and South florida, Fair uses Clearlane, Ally’s digital financing platform, to help consumers who might not otherwise be able to obtain traditional financing. Fair also uses SmartAuction, Ally’s digital wholesale auto auction tool, to acquire and resell vehicles.

“Ally is an important strategic partner for Fair, and deepening the relationship represents the type of strategic alliances that are the foundation of building a hyper-growing business like Fair,” said Painter Scott, founder and CEO of the fair. “Through this partnership, Ally provides us with a strategic building block and gives us access to a significant source of capital to evolve our solution and meet the evolving needs of the modern car buyer. ”

Since the launch in august 2017, Fair has supplied cars to more than 45,000 users in more than 30 markets across the United States. Fair is an app that puts the whole end-to-end process of getting a car to a customer’s phone. Qualified users can buy used cars on the basis of all-inclusive monthly payments they can afford, sign for the one they want with their finger, collect their keys and drive it for as long as they want, without long term commitments, debt or even physical papers.

“We are excited about the future of our alliance with Fair and look forward to taking it to the next level with continued investment in its revolutionary subscription model,” said Dinesh Chopra, director of strategy for Ally. “Fair is transforming the way consumers get and access used vehicles, and we look forward to being part of a new flexible, all-digital solution that supports both consumers and dealers. ”

“This deal is the latest proof that institutional debt markets are very receptive to how Fair is transforming vehicle finance,” said Georg bauer, co-founder and president of the show. “It’s clear that we can continue to access the capital we need to connect dealers and consumers with a fully digital end-to-end experience. ”

About the fair
Fair offers a new way to get a car that meets consumer demand for more freedom. Fair gives customers the flexibility to drive the car they want for as long as they want and lets them go anytime, eliminating the long-term commitment of traditional finance or leasing. Fair allows you to select your car, your kilometers and view your payments, all in a mobile and paperless end-to-end experience that is simple, transparent and affordable. Fair is headquartered in Santa Monica, California. For more information, please visit www.fair.com and follow us on Twitter at @fairtheapp.

About Financière Ally inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company with $ 180.4 billion active at June 30, 2019. As a customer-centric company with passionate customer service and innovative financial solutions, we relentlessly focus on “doing it right” and being a trusted financial services provider to our consumer, business and corporate clients. We are one of the nation’s largest full-service auto finance operations, providing a wide range of financial services and insurance products to auto dealers and consumers. Our award-winning online banking (Allied bank, FDIC member and Equal Housing Lender) offers mortgage loan services and a variety of deposit and other banking products, including savings accounts, money market and checking accounts, certificates of deposit (CDs) and individual retirement accounts (IRA). In addition, we offer securities brokerage and investment advisory services through Ally Invest. Our strong corporate finance business provides capital to equity sponsors and mid-market companies.

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

SOURCE Lounge

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