Car finance fintech Carmoola accelerates growth with £15.5m raise
The new funds drive Carmoola’s total funding to date to £146m
UK-based car finance fintech Carmoola has raised a £15.5m equity round.
The raise comes almost a year on from its £8.5m Series A round and £95m debt facility from NatWest last February.
The British-Ukranian startup, which has so far supported the purchase of more than £46m worth of cars, plans to use the funding to reach even more car buyers.
“Carmoola came about because we could see that the used car finance market was broken, but the status quo suited traditional lenders just fine, so nobody was doing anything about it,” Carmoola co-founder and CEO Aidan Rushby said.
“We saw the opportunity to do better and rebalance the situation in favour of the consumer, and our financial backers shared this vision. Now that we have proven our concept we are ready to bring our product to even more people.”
The goal, according to Rushby, is to make car financing as “user-friendly” and “hassle-free” as possible.
Remitly and NuBank-backer QED Investors took part in the round alongside VentureFriends, InMotion Ventures (the investment arm of Jaguar Land Rover), AlleyCorp and Kyiv-based u.ventures.
“Carmoola is shaking up an industry that had grown and remains complacent, and is addressing the poor customer outcomes and unnecessary hurdles that the incumbents have allowed to take hold,” QED Investors head of Europe Yusuf Özdalga said.