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May 27, 2024
PI Global Investments

London based car finance specialist ‘accelerates’ growth via £15.5m investment

Carmoola, the London based fintech specialising in direct-to-consumer car finance, has announced a £15.5m equity investment.

This significant raise follows an £8.5m Series A round and a £95m debt facility (both secured in February of 2023), and reflects the confidence inspired by both Carmoola’s performance to date and the strength of its innovative approach to simplifying car finance for UK consumers.

The funding will be used to reach even more car buyers, enabling Carmoola to make further inroads into the UK’s £100bn used car finance market, which is forecast to grow to £190bn by 2027. Coupled with a disciplined approach to capital allocation, this investment will accelerate Carmoola’s journey to profitability.

Investment came from US-based fintech specialists QED Investors; VentureFriends; InMotion Ventures, the investment arm of JLR (Jaguar Land Rover); New York-based investors AlleyCorp; and Kyiv-based u.ventures.

Carmoola, which launched its app in March 2022, is transforming the cumbersome and complex car finance market by putting the power back in the hands of buyers and removing the knowledge imbalance that comes with traditional and outdated lending models.

The company already boasts an average Trustpilot rating of 4.9 out of 5, from over 1,100 verified customer reviews. This investment takes Carmoola’s total funding to date to £146m (including a £95m debt facility).

Aidan Rushby, co-founder and CEO of Carmoola, commented: “We are incredibly excited about this new investment. It’s a testament to the hard work of our team and the clear value we bring to car buyers by doing things differently.

“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.

“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.

“Our goal is to make car financing as user-friendly and hassle-free as possible, and this unrelenting focus has already seen us support the purchase of over £46 million worth of cars. With this new funding, and the support of our investors, we are poised to help even more people buy the car of their dreams.”

By Matthew Neville – Senior Correspondent, Bdaily

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