In a strategic move to fortify its position as the world’s first connected carsharing marketplace, Getaround Inc has announced a new debt facility with Mudrick Capital Management, injecting up to $20 million in additional capital. This financial boost is set to fuel Getaround’s ambitious 2024 operating plan, with the company having already drawn the first $5 million from the facility.
The impact of this announcement of the debt facility has been nothing short of remarkable, as it spurred a significant surge in the stock of Getaround. The market witnessed a notable opening on Wednesday at $0.40, a considerable jump from the previous day’s closing at $0.18. This surge reflects the market’s positive response to Getaround’s strategic financial move and its promising outlook.
At the time of this publication, Getaround Inc stock (GETR) has witnessed a surge.
Getaround Inc
Current Price: $0.49
Change : +0.31
Change (%): (166.59%)
Volume: 195.1M
Source: Tomorrow Events Market Data
The decision to seek additional funding follows Getaround’s impressive Q3 2023 financial results, as unveiled in their December earnings call. The company reported robust revenue growth, showcasing a remarkable 42% increase year-over-year. Furthermore, there was a noteworthy improvement in trip contribution margin, which surged to 52%, marking a substantial 640 basis points year-over-year gain.
Adding to the momentum, Getaround recently unveiled a new unified global app and website on January 17th. This move is aimed at enhancing the booking experience for both drivers and owners, fostering seamless interaction between the U.S. and Europe. The company’s commitment to global connectivity and user convenience is evident in this upgrade, positioning Getaround as a major player in the consumer car sharing experience on both continents.
Sam Zaid, founder and CEO of Getaround, expressed gratitude for Mudrick’s continued support, stating, “This financing round marks another step in our mission to shape the future of mobility.” Zaid highlighted the company’s focus on delivering profitable, sustainable growth, underlining the importance of Mudrick’s confidence in Getaround’s innovative approach and patented technology.
Notably, the funding from Mudrick Capital Management comes with an added endorsement as Jason Mudrick, the founder of Mudrick Capital Management, joins Getaround’s Board of Directors. Mudrick’s extensive experience in capital markets is expected to bring valuable insights and expertise to Getaround, further bolstering its journey to profitability.
Jason Mudrick himself commented on the investment, emphasizing his belief in Getaround’s unique value proposition in the carsharing space. He sees the company’s potential as consumer mobility patterns continue to evolve, praising Getaround’s resilience and innovation. Mudrick expressed enthusiasm about contributing to the company’s future successes, cementing his confidence in Getaround’s vision to revolutionize carsharing and its impact on urban mobility.
In connection with the new funding, Ahmed Fattouh, CEO of InterPrivate and Getaround’s SPAC sponsor, has stepped down from the board. Getaround acknowledged Fattouh’s significant contributions to the company and expressed gratitude for his tireless work.
Getaround’s ambitious plans for 2024 include the integration of the HyreCar marketplace for gig carsharing into the same platform. This strategic move is poised to further solidify Getaround’s position as a leading force in the evolving landscape of connected carsharing.
As Getaround navigates this exciting phase of growth and innovation, the company’s stock performance and strategic decisions will undoubtedly be closely watched by investors and industry enthusiasts alike.
