Driven by environmental concerns and lured by the lucrative market, a larger number of traditional retail companies are looking at circular and sustainable models. Allowing these companies to initiate rental operations with their customers, Lisbon -based platform Flecto has raised €1.2 million in funding. The round was led by MSM, Übermorgen Ventures, and Techstars.
In May 2020, the startup had raised €200,000 in an investment round. With the new cash in its wallet, Flecto plans to extend its reach to France, Italy and the U.K.
The Portuguese platform, earlier called Rnters, allows its customers to simplify and digitise complex operations and manage all their rental operations intuitively in one platform. This can range from managing inventory, reservations and customers to accessing insurance or creating an online store. The startup provides a customisable experience that adapts to each business and grows with the company. So, any brand can offer an alternative to buying and be part of the circular economy, a market worth €36 billion in Western Europe alone.
But how does rental business between companies work? The registration of each rental is flexible. The platform enables the identification of documents, collection of payments, and 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. So now, these companies can rent out multiple items such as photographic and video material, sound or light systems, game consoles, computers, drones or bicycles via the platform.
Guilherme Guerra, co-founder and CEO of Flecto said: “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 in the equipment rental industry. 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.”