SpotHero, a mobile app-based startup has raised $20 million in Series B round of funding led by Insight Venture Partners. Other investors like Battery Ventures, Bullpen Capital, Chicago Ventures, Draper Associates, OCA Ventures, Pritzker Group Venture Capital and 500 Startups took part in the funding round.
Founded in 2011, SpotHero is an on-request parking service app that helps drivers to reserve their parking space in garages and other crowded areas through their smartphone. The startup has partnered with garages and many other places in the town and displays the locations of all the available spots on the mobile app along with it’s per hour rate. Once decided the drivers can reserve the spot and pay the parking ticket through their app when they vacate the space. This app has gained huge popularity in the places like San Francisco and New York where parking is a pain.
The Chicago-based SpotHero has gained an upper hand in the business as it does not require a large number of workers and hiring staff does not come cheap. Also, it believes that partnering with more number of garages and targeting more locations around the city would reduce the hassle of finding a parking spot for customers and capturing wider market. “We have been able to emerge as a leader, because we really go deep in our markets compared to our competitors,” said Co-founder and CEO of the company Mark Lawrence .
With the company fresh funds, the company plans to widen its corporate team, expand into other cities and partner with more number of garages in the exciting and new market. Discussions are also in place to offer valet services with some garages.
“SpotHero is leveraging mobile technology to help the parking industry offer an even better consumer experience,” said Paul Martino, managing director at Bullpen Capital. He also added, “Working closely with Mark and his team, I’m confident that they have both the breadth and depth to become the go-to-partner for the parking industry.”
Functioning in 12 locations, three locations have already started generating revenue for the company. The growth of the 60-employee company seems striking for the company is growing with the increase of 20% business month-over-month with more than one million cars parked in Chicago alone. Lawrence is quite strong that the company as a whole would start making money soon.