DIVVY PARKING DRIVES EXPANSION AFTER RAISING $2.5M
Written on the 16 February 2016
TRANSPORT-TECH startup Divvy Parking has revved up growth plans, after raising $2.5 million in capital.
The Sydney-based business uses the share economy model to tackle the parking crisis in the CBD, by connecting commuters with commercial property owners and managers looking to maximise the value of parking assets.
The Series B funding round takes Divvy's total investment to $5.3 million, following a $2.5 million Series A funding round early last year and $300,000 seed round in 2013.
The capital will be used to roll-out its mobile building access technology across Australian cities, after a successful pilot in Sydney.
Commuters will be able to access a network of thousands of spaces bookable daily and monthly, with hourly rates to be added after. New spaces will be added weekly.
Divvy Parking founder and CEO Nick Austin (pictured) says the investment will allow the business to add scale and grow its national presence.
"The demand for convenient short-term and long-term parking is only increasing among commuters who are pushing for a smarter, more accessible, flexible connected cities, the likes of which are already developed abroad," Austin says.
"These business milestones are the next step toward Divvy's goal of improving Australia's transport and parking problem.
"We're about to begin rolling out our short-term mobile access technology in select commercial properties across the CBD areas of Sydney, Melbourne and Brisbane, following a very successful trial period.
"We are now looking to capitalise on a number of opportunities that will scale Divvy globally and maintain momentum and market share in the local commercial property market."
Divvy is working with Transport NSW to implement smart technology solutions to ease congestion issues associated with George Street Light Rail, as well as strategic partnerships with DEXUS Property Group, Knight Frank and GPT Group.
The business announced a string of strategic heavyweight industry appointments to secure further partnerships across commercial property and government.
This includes prominent businessmen Steve Vamos and Peter Gammell to the advisory board, and Microsoft's former head of research and development James Simpson as chief technology officer and director.
"We're currently eyeing Asia for international expansion, particularly China, where car ownership is expected to grow by roughly 10 per cent per year and congestion issues continue to plague major cities," Austin says.
"Divvy Parking has been in partnership discussions with a number of large players in the Asian commercial property market and we're excited about what 2016 has in store for us."
The short-term parking platform will be rolled out across Australian CBDs next month.