Self-funded companies don’t appear in startup news as often as venture-backed ones, as the former don’t have glittering funding rounds to boast about. Fleet is a good example of a company that has never raised outside capital, but has been growing steadily.
The Paris-based company originally offered a way to rent hardware, so instead of spending a small fortune on a bunch of laptops for their employees, businesses could use Fleet to rent devices and pay a monthly fee. The company is now launching several software services on top of its hardware-as-a-service proposition, from device management to cybersecurity and insurance.
As a self-funded company, Fleet focused on streamlining its operations to remain as efficient as possible and spend less money than it makes. For example, the company doesn’t have a warehouse, as it ships devices directly to customers.
Similarly, the company partners with financial institutions, letting them manage the credit lines directly, so that it carries no risk in the event of default. In return, financial institutions can access a hitherto untapped market through Fleet. Over the years, the company has expanded into other products, such as smartphones, tablets, accessories, phone booths and furniture.
However, it has not all been a bed of roses. The startup grew in parallel with the French tech ecosystem, which has grown significantly for years. But, as in other ecosystems around the world, French startups have found it increasingly difficult to secure funding locally. Many companies have had to make several rounds of layoffs to stay afloat.
“The slowdown in fundraising and startup hiring, which we could predict during the second half of 2022, was quite worrying at first,” Fleet co-founder and CEO Alexandre Berriche told Tech News. “But in the end, I think it was beneficial for us as it encouraged us to diversify our revenue.”
Did the startup think about raising money from a venture capital firm when its clients downsized to cover the revenue gap? “No, never, not even when we experience a slowdown in 2023. Also, I don’t think money is a magic bullet for anything – at best, it’s an enabler or an accelerator. It doesn’t help you come up with the best possible strategy before raising funds,” Berriche said.
In addition to adding new products to its portfolio, the company has sought to diversify its customer base across industries and regions. Today, traditional small and medium-sized businesses that are not backed by venture capitalists make up the majority of Fleet’s customers, which are spread across 120 countries.
Fleet currently works with 1,500 companies and has around 100,000 users (its clients include Personio, SafetyWing, SumUp and Seedtag). It has offices in Paris, Barcelona and Berlin, and is about to open a new one in London. And July 2024 was Fleet’s best month ever in terms of revenue.
Having recent laptops that work is one thing, but making sure they are managed properly is another important part of the typical IT department. That’s why Fleet is expanding into software and offering more services.
For example, Fleet can distribute laptops and smartphones with a pre-installed mobile device management (MDM) solution, Omnissa’s Workspace One. Customers can also choose to get Bitdefender as a cybersecurity solution or Keeper as a password manager for their teams.
Hofy is another company that has been working to turn IT into an outsourced service. The company was acquired by Deel, the remote hiring platform. Services like Fleet or Hofy make sense for many companies, especially when they have distributed teams.
“Our vision is to become the one-stop IT provider for SMEs. We believe that offering this comprehensive solution, particularly through the rental of IT equipment, allows us to gain a strategic position with our customers. We can help them implement best practices in IT and cybersecurity,” says Berriche.
