IAG and Seven West Media, have led a $28.9 million latest funding round in Australia’s first car subscription company Carbar.

The funds will be used to broaden Carbar’s marketing, partnership and technology capabilities, as it looks to further scale its operations in Australia and capitalise on adoption of electric vehicles (EVs). Carbar has seen a more than 2000 per cent increase in active subscribers since its last cap raise in July 2019.

IAG Group Executive Direct Insurance Australia, Julie Batch, said: “We’re proud to have partnered with Carbar since 2019 and supported its growth as the pioneer of Australia’s car subscription market. 

“Carbar’s world-class digital capabilities have also provided us with the opportunity to evolve with the mobility needs of our customers, who, in the unfortunate event their vehicle is a total loss after an accident, can now source a new or used vehicle through Carbar and have it delivered.

“We’re excited by the opportunities ahead for Carbar and providing the best possible experiences for our customers today and into the future.”

Carbar co-founder and CEO Des Hang said: “This round will help us expedite growth in the business and make Carbar a household name. While we are thrilled with our growth to date, we realise that our current round of car subscribers are really early adopters.

“Given the experience overseas -- in less car obsessed markets -- we know that with the right push, this trend of subscription can compete with and rival car ownership. We’ll be leading the charge on this for the entire car subscription industry.

“We also believe Carbar will play an instrumental role in the adoption of EVs across Australia as there are few solutions out there helping make these cars more accessible and easier to afford. The global rise of EVs is an inflection point for the auto industry. We want to be a global brand before this trend is fully realised, and in order to do that we need to further accelerate our growth.”

Seven West Media’s Head of Seven West Ventures, Alan Stuart, said: “Carbar already holds a unique position in Australia’s evolving auto industry. It’s a compelling consumer offering that, with the right push, has the ability to totally change the way we perceive EVs in Australia.

“By working closely with Carbar, we aim to accelerate its growth and help more Australians realise the value in car subscriptions and EV technology.”

To find out more about Australia’s first car subscription company, visit Carbar: www.carbar.com.au