Divvy Parking gets funding to solve the world’s parking problems

Divvy CEO, Nick Austin. Photo credit: Divvy.

Australian car parking enabler Divvy Parking has raised a series B round of funding worth US$1.79 million, it announced today. The funding comes from unnamed investors in Australia and Hong Kong. The funds have been received by the company in full, CEO Nick Austin tells Tech in Asia.

(UPDATE, 16:57: This story has been updated with comments by Divvy CEO Nick Austin.)

Including the series B, the startup has so far raised a total of US$3.8 million.

Space owners make money and drivers have an affordable and secure parking spot.

The company allows drivers to lease privately-owned parking spaces in central business districts (CBDs) in Sydney, Melbourne, and Brisbane. By partnering with office towers that have unused spaces, it helps commuters book those free spots through their phone on a monthly or daily basis. The startup is currently preparing to offer hourly bookings as well.

Divvy currently has around 10,000 monthly active users, according to Nick. The startup provides more than 3,000 parkings spaces in the three cities it’s active in, he says. Another 1,000 spaces are expected to open up in Sydney in March, and 2,000 more will follow in Sydney and Melbourne.

The funding will be used to roll out Divvy across office buildings in Australia. Placed within the buildings, its system allows its app users to make their bookings, find their spots, and pay seamlessly. Divvy makes a commission out of every booked space, space owners make money, and drivers have an affordable and secure parking spot.

Divvy has also hired key personnel to help it along its journey, including new CTO James Simpson, formerly at Microsoft, as well as advisory board members Steve Vamos and Peter Gammell.

See: Parking app Divvy eschews disruption in favor of collaboration

Divvy is in talks with Sydney’s transportation authority, Transport NSW, about potentially providing more parking spaces for commuters in Sydney’s CBD. Works in the area like the Light Rail construction at George Street are creating congestion, Nick says, and the startup could help ease the pressure.

As parking issues aren’t native to Australia, the company is gearing up to cross the island continent’s borders. “We’re currently eyeing Asia for international expansion,” CEO Nick Austin says in a statement. “Particularly China, where car ownership is expected to grow by roughly 10 percent per year and congestion issues continue to plague major cities. Divvy Parking has been in partnership discussions with a number of large players in the Asian commercial property market and we’re excited about what 2016 has in store for us.”

Nick tells Tech in Asia he’s been meeting with some partners in Hong Kong about bringing Divvy’s technology to China, customizing it for the challenges he expects there. “Currently, we’re looking to get a full understanding of the market, including building owners, managers, and transport systems before turning our attention to other countries in the region,” he adds.

Startups that offer similar services in Asia include Thailand’s Parking Duck and China’s Tingchebao, which raised a series A of US$2.6 million in March 2015.