Bootstrapped companies don't appear in startup news as often as venture-backed companies because they don't have flashy funding rounds to show off. Fleet is a great example of a company that has grown steadily without ever raising outside funding.
The Paris-based company initially offered a way to rent hardware, so that instead of spending a fortune to buy an army of laptops for their employees, companies could lease devices using Fleet and pay a monthly fee. The company has now launched several software services in addition to its hardware-as-a-service proposition, from device management to cybersecurity to insurance.
As a bootstrapped company, Fleet has focused on optimizing its operations, making them as lean as possible and focusing on spending less than making more money — for example, the company doesn't have a warehouse and ships devices directly to customers.
Similarly, the company partners with financial institutions to allow them to manage credit lines directly, so they don't take on risk if payments default. In return, financial institutions can access previously untapped markets through Fleet. Over the years, the company has expanded into other products, including smartphones, tablets, accessories, phone booths and furniture.
But it hasn't always been smooth sailing. The startup has grown in tandem with the French tech ecosystem, which has grown significantly over the years. But like other ecosystems around the world, French startups are finding it increasingly difficult to raise funding locally, with many forced to make multiple layoffs to stay afloat.
“We were quite worried at first because we could predict that startup funding and hiring would slow down in the second half of 2022,” Fleet co-founder and CEO Alexandre Berish told TechCrunch. “But ultimately, I think it was beneficial for us because it encouraged us to diversify our revenue.”
When clients cut staff to fill revenue gaps, did the startup consider raising money from venture capital firms? “No, not even once, not even when we had a recession in 2023. And I don't think money magically solves anything. At best, it's a catalyst or accelerator. It doesn't help you figure out the best strategy before you raise money,” Berish said.
In addition to adding new products to its lineup, the company has also sought to diversify its customer base across industries and geographies: Traditional small and medium-sized businesses, not backed by venture capital, now make up the majority of fleet customers across 120 countries.
Fleet currently works with 1,500 companies and has about 100,000 users. Customers include Personio, SafetyWing, SumUp, and Seedtag. The company has offices in Paris, Barcelona, and Berlin, and is opening a new office in London. July 2024 was also Fleet's best month ever in terms of revenue.
Keeping modern laptops in good working order is important, but maintaining them properly is also a key part of any typical IT department, which is why Fleet is expanding into software and offering more services.
For example, Fleet can distribute laptops and smartphones with Omnissa's Workspace One, a mobile device management (MDM) solution, pre-installed. Customers can also get Bitdefender as a cybersecurity solution for their teams, or Keeper as a password manager.
Hofy is another company working to turn IT into an outsourced service. The company was acquired by remote hiring platform Deel. Services like Fleet and Hofy make sense for many businesses, especially those with distributed teams.
“Our vision is to be the one-stop shop for all things IT for small and medium-sized businesses. We believe that offering this all-in-one solution, especially thanks to computer leasing, gives us a strategic position with our customers, where we can help them adopt best practices in terms of IT and cybersecurity,” Berish said.