Loggerhead Ventures Fund invested in CAROO
August 28, 2024
The car-sharing startup with an environmental focus that provides a solution to urban transportation and contributes to addressing the seasonality of the vehicle rental industry
Loggerhead Ventures Fund, a new investment fund based in Thessaloniki, Greece, that focuses on startups involved in green and digital transformation, has officially announced the inclusion of Caroo in its portfolio. Caroo is the first car-sharing service in Greece, providing convenient and fast urban mobility by utilizing the temporarily idle fleets of car rental companies.
Loggerhead Ventures Fund’s team recognized the potential of the innovative idea behind Caroo’s creation and aims to contribute to accelerating the startup’s growth. Caroo successfully launched its operations in Athens in 2023 and shows significant scalability aspirations. The Caroo App already has 9.000 registered users, who have access to cars on demand, which they can rent for a few minutes up to a day. The vehicles managed by Caroo are owned by car rental companies, which helps them deal with seasonal fluctuations. In periods of low demand, the number of cars in use decreases significantly, with the percentage of vehicles being rented dropping to just 20%.
It is worth mentioning that in its first 12 months in operation, Caroo estimates a 36% reduction in pollutant emissions compared to what would have been released if an average Greek car had been used to travel the exact distances. This reduction is due to the environmentally friendly features of the modern vehicles available for short-term rental. At the same time, Caroo contributes to the modernization of the aging fleet of cars circulating in Athens.
Dr. Evangelos Kosmidis, Loggerhead Ventures Fund’s CEO, referring to the selection of Caroo and its inclusion in the Fund’s portfolio, emphasized that: “The selection of this specific startup was based on several factors, with the most critical one being the composition of the founding team. The team consists of individuals who have a deep understanding of the constantly evolving business landscape and possess the necessary expertise and skills to develop their business venture. At the same time, their business idea and Caroo’s overall operation are fully aligned with the Fund’s commitment to supporting companies that prioritize ESG goals and their direct impact on the environment and society.”
Mr. Christos Hilletis, founder and CEO of Caroo, said: “The investment round we just closed is a milestone for Caroo. It shows that Caroo’s model, combined with the team’s optimal execution, can solve problems car-sharing faces. However, the most important thing is that it is an asset-light business model with a faster growth rate compared to the industry. Loggerhead Ventures’s team was present and hands-on from the first day that both sides expressed their mutual interest. We expect to see the fermentation and results of the cooperation with a climate-oriented new V.C., like Loggerhead Ventures Fund. In closing this round of financing, I consider the contribution of Anthology Ventures of Mr Argyrios Spyridis, with the hands-on model they follow, and our investors from HEBAN & LBAN to be important.”
One of the key advantages of using Caroo’s service is the significant reduction in traffic costs. Users can save a substantial amount of money by eliminating fixed and often expensive obligations such as traffic taxes, insurance, and maintenance of a privately owned car. At the same time, Caroo provides convenient access to areas with limited public transport coverage and offers an affordable option for city residents who cannot purchase or lease a vehicle long-term. The long-term adoption of car-sharing can help reduce traffic congestion, free up parking spaces, and potentially decrease the growing number of privately owned vehicles, a primary source of greenhouse gas emissions. The used cars are recently manufactured and are electric, hybrid, and more sustainable than most privately owned vehicles, and as a result, this contributes to reducing the production of pollutants. Additionally, regular vehicle checks contribute to improved road safety.