Renting a car has become so simple that it can take just a few minutes from start to finish for the whole process to be done. So why isn’t it as easy to lease a car? With Honcker — it is. It’s a car-leasing marketplace where with just three swipes you can fill out an application, get pricing, and have your new lease vehicle delivered the next day. Disrupting the car leasing market, this service allows you to complete everything faster than you can set up your next Tinder date. In an age of on demand services, Honcker is a no brainer if you are looking to lease a car.
AlleyWatch spoke with CEO Nathan Hecht about the company as well as their newest round of funding.
Who were your investors and how much did you raise?
The recently closed seed financing round was led by Evolution Corporate Advisors with participation from Lead Edge Capital. We raised $3.6 million.
Tell us about your product or service.
Honcker, Inc. is the only car-leasing marketplace where a consumer can lease a car in just three swipes through their mobile devices and have the car delivered the next day.
I spent almost an entire day at a car dealership in Long Island, looking for a car to lease instead of spending time with my family. While at the dealership I wondered why there wasn’t already a way to search and lease a car on my phone. With my background in technology, I knew I could create it. I went home and started working on initial plans that night.
How is it different?
Honcker is the only app that brings the entire leasing process online. Consumers can browse and select a car to lease; see an actual price; complete the transaction; and get a car delivered from a local dealer the next day, all in one seamless process from the convenience of their own homes or on the go.
What market you are targeting and how big is it?
We’re currently delivering cars in New York, Los Angeles, Arizona, Nevada, Pennsylvania and Florida, with plans underway for expansion to new cities.
What’s your business model?
We have a network of more than 200 premiere dealer-partners that we leverage to offer and deliver vehicles to consumers.
How do you plan to compete in this space?
We’re first to market in this space and we’re already partnered with the largest and best dealer groups in the states that we currently serve. Our modern digital technology combined with our commitment to customer service will ensure that we remain at the forefront of meeting consumers right where they’re at – in the digital space. As we continue to expand and scale, we plan to introduce an e-commerce website and a virtual reality in-car experience.
What was the funding process like?
The funding process was a great experience for us. We were approached by a number of investors, and we were lucky enough to have the luxury to choose the terms and investors we wanted to work with.
What are the biggest challenges that you faced while raising capital?
It was difficult to balance raising capital with making enough time to keep the business moving and growing.
What factors about your business led your investors to write the check?
Honcker is the first business to disrupt the traditional, complicated car leasing process by making it truly convenient and taking it completely online. We’re the first car leasing marketplace to meet customers where they’re at in the online, on-demand economy.
What are the milestones you plan to achieve in the next six months?
We’re currently in the process of rolling out updates to the app that further enhances its usability.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Keep grinding. Good things happen when you work hard, keep your head down and stay focused.
Where do you see the company going now over the near term?
In the near term, we’ll continue expansion in our current markets and in new markets across the country by developing partnerships with top-tier dealerships. We’re also rolling out feature updates that will enhance the consumer experience.
Where is your favorite fall destination in the city?