By RICK LEISEMANAssociated PressWASHINGTON (AP) — A major U.S. car rental and leasing company is getting a $50 million infusion from a big new investor.
The investment group, known as Citi, announced Friday it has raised a $1 billion round of capital, bringing its total investment to $5.3 billion.
Citi, which operates in more than 1,200 cities and towns, said it has more than a million customers, many of whom pay as little as $35 per month.
The group is targeting cities with growing populations that are struggling to find affordable car rental alternatives.
It said it is also seeking to help smaller cities that rely on car rentals, such as the Detroit area, that are already struggling.
The $1.6 billion investment in the company marks Citi’s second round of financing in less than two months.
Last week, the company announced it was raising $1 million in new financing, including $1,000 million from Citigroup.
The company says it plans to continue to invest in local, state and national cities, as well as in areas with growing population, including metro Detroit and rural counties in New York, Indiana, Illinois, Tennessee, and Alabama.
Cities are the fastest-growing areas for car rental companies, with nearly a third of their car rentals now booked.
Citi said it plans additional investments in its own cities as well.
Citigroup is an investment bank with global headquarters in New Jersey.
The firm says it will use the new funding to accelerate and expand its growth in key markets.