OCN, a fast-growing Mexican start-up that provides rental cars to gig workers, will invest US $150 million over 18 months to expand services in Mexico.
The company, formerly known as One Car Now, plans to expand car access for ride-hailing drivers in five major cities: Mexico City, Monterrey, Guadalajara, Tijuana and Querétaro.
Toward that end, OCN plans to triple its current fleet of vehicles from 5,000 to 15,000 vehicles, and expects to add at least 30 new employees to its staff of 120.
Given their nontraditional employment status, gig workers often lack access to traditional lines of credit.
OCN seeks to address this issue by utilizing risk-assessment analysis to lend to customers who are “often excluded from or overlooked by the formal financial system in Latin America and the United States.”
The company offers drivers a week-to-week payment arrangement that includes insurance, maintenance, registration and roadside assistance. Drivers may purchase the car after 36 months.
The firm estimates the number of gig drivers in Mexico who can access cars under its scheme to be in the thousands.
The investment will also be used to drive international expansion, particularly in the U.S. and Brazil, as the company seeks to achieve a global presence.
Additionally, the firm plans to expand beyond car rentals by introducing additional financial products.
Founded in 2022 and based in Mexico City, the company says its mission is based on the belief that “transforming the way people get a new car can drive economic and technological development.”
It defines its goal as making “a positive difference by committing to ethical and sustainable practices that will help us improve people’s mobility experience.”
OCN announced its investment following the closing of a Series B round in February, the amount of which was not disclosed. Series B is the second round of venture capital funding that a startup typically raises after successfully completing a Series A round.
Fintech Futures reported that in July 2024 OCN secured a US $86 million Series A funding round comprising a mix of equity and debt.
These transactions were completed at a time when venture capital investment in Latin America has fallen to its lowest level in nearly seven years, according to PitchBook.
The contraction in venture capital funding is partly due to global economic uncertainty and the withdrawal of U.S. funds, but fintech startups like OCN that are targeting the gig economy in emerging markets are carving out unique opportunities for scalable growth, according to AInvest.
AInvest said OCN’s strategy suggests it is well-positioned to thrive in this new reality as it offers a compelling thesis: addressing underserved markets with technology-driven, capital-efficient solutions.
With reports from El Financiero, Bloomberg, AInvest and Fintech Futures
