UK car finance fintech Carmoola has successfully raised £8.5 million in a Series A funding round, alongside an additional £95 million through a debt facility.
The funding round was led by QED Investors, with contributions from existing investors VentureFriends and InMotion Ventures, the investment arm of Jaguar Land Rover. NatWest also provided the debt facility.
Founded last year, Carmoola offers a “neo car finance” solution designed to expedite the car purchasing process, reducing it from days to mere minutes. Their proprietary technology streamlines the process by providing buyers with a budget, generating a complimentary history check on the vehicle, and enabling instant online payments or payments at the showroom in just 60 seconds with a Carmoola virtual card.
Carmoola’s CEO Aidan Rushby emphasizes that the used-car finance sector is primed for a fintech transformation. He notes that consumers desire the flexibility to shop without the hassle of submitting extensive paperwork and payslips.
Rushby points out that frustrated consumers often face excessive rates, manipulated commissions, and subpar customer service, with the drawn-out financing process exacerbating the issue. He explains that the current model is cumbersome, full of paperwork and uncertainty, typically forcing consumers to secure financing after they have already developed an emotional attachment to their desired vehicle. Carmoola aims to change this dynamic.