Development Bank of Wales joins Admiral Pioneer in backing Wagonex

The Development Bank of Wales has confirmed its third equity investment in Wagonex, the UK’s leading mobility subscription platform provider - just one week after the announcement of a first strategic investment by Admiral Pioneer.

Launched in 2016, Wagonex designs, builds, and manages flexible, all-inclusive technology automotive subscription platforms, which enable vehicle suppliers to offer subscription options direct to consumers. They provide a seamless end-to-end customer journey, with an automated credit decision engine, creating flexible contracts inclusive of road tax, insurance, breakdown cover, and servicing.

Wagonex has delivered more than 120% year-on-year growth since relocating to Cardiff in 2019. This followed an initial equity investment by the Development Bank’s Technology Ventures team as part of a seed investment round.

Toby Kernon, founder and chief executive officer of Wagonex, said: “These are exciting times for our business as we continue to capitalise on the opportunities in the car subscription market. The ongoing support of the Development Bank as our long-term institutional investor and the strategic investment by Admiral Pioneer demonstrates the strength of our business and gives us the necessary firepower to rapidly scale in the UK.”

Dr Richard Thompson, from the Development Bank's Technology Ventures team, said: “Wagonex is a great example of how our  equity investment can attract fast growth tech businesses to Wales and leverage substantial co-investment. We’re looking forward to working with Toby, the Wagonex team and our new strategic co-investor Admiral Pioneer.”

This latest investment comes from the £204 million Wales Business Fund, financed by the European Regional Development Fund and the Welsh Government. Loans, mezzanine finance, and equity investments are available for deals between £50,000 and £2 million with terms ranging from one to seven years for small and medium-sized businesses (those with fewer than 250 employees) based in Wales, or willing to relocate to Wales.