Pangée in the Pay-per-Use Era

FACTS

• The French start-up Pangée was founded in 2014 and designed a PaaS-based long-term rental solution.

• This open, white-label platform can be added to e-merchant sites if they want to feature pay-per-use services. Eligible services for long-term rental options by Pangée include:
  • Insurance premiums
  • Maintenance
  • Additional subscriptions
  • Customised options

• Even if meant for a wide range of services, for now, these leasing options are currently applied to bike rentals (Lizbike), mobile phones and connected objects (Connectliz).

• Pangée just expanded their set of offers with a turn-key option, called mypangee, to be integrated in e-merchants’ sites.

• Their model already attracted various players: the insurance company AG2R La Mondiale, bike rental companies (such as Holland Bikes, Altermove, Rossignol), the local administration of Haut-Chablais en Savoie, as well as start-ups focusing on connected objects (such as Flipr or EyeLights). Roughly 200 points of sale are already equipped.

• Business model: Pangée licences their solution to customer companies. They also charge application fees as well as a commission to customer banks and insurance companies.

Key Figures

• Revenue end-2017: €470,000
• Revenue end-2018: €940,000
• Goal by 2021: €24M

CHALLENGES

• Help businesses match evolving consumption habits. Pangée based their offer on a pay-per-use concept rather than on the notion of property. Many companies, industries, local administrations are currently rethinking their models and shifting to Product-Service Systems. Pangée’s offer is meant to assist the ongoing change in value proposition for goods and services.

• Attract industry players. This start-up did not set any prospecting or partnership-related limits. In the age of connected devices, they bet on attaching services to physical tools and inversely (to address mobility or security needs, etc.).

MARKET PERSPECTIVE

• Pangée (12 employees in the end of 2018) is looking to hire commercial and R&D team members, and increase their sales force to 50 employees within 3 years. As the market for leasing consumer goods is expanding, this start-up shows high objectives.

• Pangée also aims for international reach, starting with the following countries: Germany, Belgium / The Netherlands / Luxembourg, the UK, Italy and Spain. They already have partnerships in place with local banking institutions.

• Eventually, they plan to achieve these goals via addressing software vendors, stock managers and CRM specialists.