Igor Gordiichuk, Amy McKechnie, Aidan Rushby, Danny Armstrong & Roman Sumnikov/Carmoola.
Car finance fintech Carmoola full speed ahead with £95m NatWest debt facility
“Used-car finance couldn’t be more ready for a fintech revolution.”
Car finance fintech Carmoola has raised £103.5m in a mix of debt and equity to “revolutionise” the way people pay for cars in the UK.
The British-Ukranian startup, which launched just 10 months ago, raised £8.5m Series A alongside a £95m debt facility from NatWest.
Hoping to liberate the “archaic, slow and backwards” car finance market, Carmoola aims to bring its customers a new fintech-forward product in the form of “neo car finance”.
“Used-car finance couldn’t be more ready for a fintech revolution,” Carmoola CEO Aidan Rushby said.
“Consumers want the freedom to go shopping anywhere, knowing what they can spend, without sending off reams of forms and payslips.”
According to Carmoola, it has reduced the typically lengthy process of completing a car purchase from days to “just minutes”.
It says it makes use of exclusive proprietary technology and systems that enable a streamlined process, providing customers with a budget and a free history check on the car.
“Frustrated consumers are being put in a corner with excessive rates, manipulated commission, and poor customer service, but it’s the very process of getting finance that is at the heart of the problem,” Rushby continued.
“It’s full of paperwork, lengthy processes, and lack of certainty, but most importantly, car finance is obtained after the consumer has fallen in love with the car they want, which wholly puts them on the back foot. Until now, that is.”
Carmoola says that their tech allows payments to be made online instantly and within 60 seconds in person at a showroom.
It plans to use the funds from the round — led by US-based fintech specialists QED investors and with participation from existing investors VentureFriends and Jaguar Land Rover’s investment arm InMotion Ventures — to scale the businesses and support growing demand by expanding its team.
“Having not adapted to modern expectations for the consumer, the car finance industry has been caught off guard by the new neo-car finance brand Carmoola, who champion the consumer at every part of the process,” QED Investors partner and head of Europe Yusuf Özdalga said.
“Carmoola is on track to dominate the car finance sector with a game-changing approach to purchasing.”