Übermorgen Ventures invests in Flecto to accelerate retail circular economy
SOURCE: Flecto
June 22, 2022
Lisbon - Flecto, a platform that unlocks rental operations for businesses and retailers, has raised €1.2 million in an investment round led by MSM, Übermorgen Ventures and Techstars.
This investment will enable companies to transition their business model, opening up the possibility for them to enter the growing circular economy and implement subscription and rental models.
Flecto team
Traditional retail companies are increasingly looking for circular models, not only due to environmental concerns but also because it is a lucrative market with high customer loyalty and recurrence. Flecto was born to allow these companies to initiate rental operations with their customers, accelerating their adaptation process to more sustainable models that meet a new generation of consumers that values access over ownership.
Through Flecto, any brand can offer an alternative to buying and thus be part of the circular economy, a market worth €36 billion in Western Europe alone.
The company already has more than 150 clients such as Click and Play Rent, ComercialFoto and Lisboa Autêntica. Thanks to Flecto, these companies are able to rent out multiple items such as photographic and video material, sound or light systems, game consoles, computers, drones or bicycles.
With Flecto, the registration of each rental is flexible and the experience is customizable to different rental operations, allowing to scan identification documents, collect payments, services and/or guarantees in an easy and digital way. Companies also have access to a professional insurance policy for the protection of all their products as well as the possibility to create their online store.
“More and more companies and people are looking for alternative models to buying and selling: they just need the right tools to enter the Circular Economy. When we realized that companies were already using our platform to build online stores and manage inventory, we saw the opportunity for our product to solve the main problems around the equipment rental industry. Both in terms of security, digitization of processes, and setting up online stores. This is what drove the transformation from a peer-to-peer rental marketplace to a SaaS where companies can manage rental operations and leverage sales through an online store", explains Guilherme Guerra, co-founder and CEO of Flecto.
Flecto originated as Rnters, a rental marketplace for all kinds of items. It was in early 2020 and between two major accelerator programs (Maze-X and Techstars), that they realized the product was already being used by rental companies in a similar way to a "Shopify for rentals". An opportunity was created to solve key problems in the rental industry, both in terms of security, digitalization, and setting up online stores. This is what drove the transformation from a peer-to-peer rental marketplace to a platform where companies can manage rental operations and leverage sales through an online store.
"We truly believe in Flecto. Since the beginning we have full faith in Flecto’s team as well as the market size, which is still underexplored by technological solutions. Furthermore, what we are excited about at Flecto is the potential for scale and the systemic impact of adopting consumption patterns that prioritize access and responsible consumption, to the detriment of purchasing goods and equipment that remain unused for long periods of time. Flecto's impact proposal is unequivocal and can make our daily consumption significantly more efficient.”, adds António Miguel, Managing Partner of the MSM impact fund.
“Many items that we all own are used only rarely. Hence the CO2 emitted to produce them is amortized over few uses only. Renting instead of owning helps to bring the CO2 per use of an item down. And Flecto helps get the renting done. A perfect case for Übermorgen Ventures where our mission is to help decarbonize the world. We’re very excited to be backing Flecto”, explains Übermorgen Ventures Managing Partner Myke Näf the rationale behind their investment decision.
About Flecto
Designed for rental companies and retailers managing rental operations, Flecto helps businesses enter and thrive in the circular economy and provides an easier and safer rental experience for businesses and customers. Flecto allows its customers to simplify and digitize complex operations and manage all their rental operations intuitively in one platform: from managing inventory, reservations and customers to accessing insurance or creating an online store, Flecto provides a customizable experience that adapts to each business and grows with the company. “We believe that the future is about empowering rental businesses, and with Flecto we aim to bring our customers closer to this new generation of consumers who value access rather than purchase. Our goal is to empower people and companies to rethink consumption for a more sustainable future.“
About MSM
MSM (Mustard Seed MAZE) is an impact Venture Capital fund that invests in the great businesses of the future, those that solve social and environmental challenges. MSM targets fast-growing European ventures with global lock-step potential where impact and financial returns are mutually reinforcing. In addition, MSM provides tailored support throughout their journey of growth. Based in Lisbon and London, MSM has invested in European-based startups such as Kitch (PT) - already acquired by Glovo -, Student Finance (SP), Ohne (PT) and Omocom (SE).
About Übermorgen Ventures
Übermorgen Ventures is a Swiss investment company that backs European early-stage climate tech and decarbonization startups. We believe that there is an urgent need to build solutions to the climate crisis and that doing so presents an enormous business opportunity for startups that help decarbonize products, processes, services, or business models. In accordance with our thesis, we evaluate startups based on a business and an impact model.