Car hire company City Car Club has raised £4 million from institutional and private investors to expand its fleet and back office facilities.

Car hire company City Car Club has raised £4 million from institutional and private investors to expand its fleet and back office facilities.

The company, which rents cars by the hour in seven UK cities, claims to have increased membership numbers by 80 per cent, to 10,000, during the past year.

CEO James Finlayson, who invested in City Car Club in 2006 as a business angel and is now the largest individual shareholder, says that consumers looking to save money on car costs have driven the company’s recent growth.

This round of funding was raised in tranches with the assistance of London-based corporate finance firm Nash Fitzwilliams.