Car sharing platform Karshare has achieved its £1m funding target through its equity crowdfunding campaign.

Karshare said it has over 435 investors to date and has achieved the total standing over £1.3 million, with the campaign not due to close until mid-January.

Launched in 2020, the business enables people to rent out their car to people in their community using keyless technology.

Andy Hibbert, founder at Karshare, said: “After an incredibly turbulent year, it’s fantastic to start 2021 off by smashing our fundraising target and see our investors come together to make car sharing possible.

“The funds will be used to expand into new UK cities, invest in the Karshare platform and technology as well as further grow the team.”

With people working from home due to the COVID-19 coronavirus pandemic and no longer doing the daily commute to work, the idea of renting out their car has become more appealing to car owners, said Karshare.

A survey of 1,000 people conducted by Karshare revealed that four out of ten (39%) consumers said they have seen their household income decrease due to the Coronavirus pandemic.

In addition, over half (61%) said their monthly car finance agreement repayment is one of their biggest financial concerns and four out of ten (39%) said they lose sleep worrying about how to pay their fixed monthly outgoings most or all the time.

Hibbert said: “The idea that so many families and individuals are paying for and maintaining at least one vehicle, if not more, and those cars on average sit unused 96% of the time is a huge waste of resources - both in terms of consumer personal finance but also environmental impact.”

Car sharing will also play a key part in the Government’s plan to achieve net zero carbon emissions by 2050, said Karshare.

In October last year, Karshare announced the launch of Lease and Share, to enable consumers who take a car out on finance and rent them out to others nearby.