London-based “neo car finance” startup Carmoola has raised £8.5 million in a Series A equity funding round that also sees the accompaniment of £95 million in debt facility.
The £8.5 million portion of the round was led by QED Investors, with participation from existing investors VentureFriends and InMotion Ventures, the investment arm of Jaguar Land Rover, while Natwest fronted the £95 million debt funding.
According to the company, the new capital will be used to scale operations and support the rapid customer adoption Carmoola has seen since launching just ten months ago. Likewise, the startup plans to grow the team to 20 people to meet this demand.
In a nutshell, Carmoola is dragging the old-school method of financing an automobile into the 21st century. Whether the boardroom likes it or not.
The company’s proprietary tech stack facilitates a streamlined process that gives buyers a budget, a history check on the car, and a method of payment that can be made instantly online or at a showroom within a minute using a virtual card.
“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. 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,” explained CEO Aiden Rushby. “Until now, that is.”
In addition to Rushby, Carmoola is co-founded by Amy McKechnie (Director of Product and Marketing), and Ukrainian co-founders, Roman Sumnikov, Chief Technology Officer, and Igor Gordiichuk, Chief Information Officer.