Carmoola secures a further £15.5M investment to change the future of car financing

The investment will accelerate Carmoola’s journey to profitability.
Carmoola secures a further £15.5M investment to change the future of car financing

Today car financing company Carmoola announced a £15.5 million equity investment. It follows an £8.5 million Series A round and £95 million debt facility in February 2023, bringing the company’s funding to £157.4 million. 

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by putting the power back in the hands of buyers and removing the knowledge imbalance that comes with traditional and outdated lending models. 

Aidan Rushby, co-founder and CEO of Carmoola, said: 

“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.”

Carmoola will use the funding to make further inroads into the UK’s £100 billion used car finance market, which is forecast to grow to £190 billion by 2027. 
The investment came from QED Investors, VentureFriends, InMotion Ventures (the investment arm of Jaguar Land Rover), New York-based investors AlleyCorp, and Kyiv-based

Yusuf Özdalga, partner and head of Europe at QED Investors, said:

“Carmoola is shaking up an industry that has grown and remains complacent and is addressing the poor customer outcomes and unnecessary hurdles that the incumbents have allowed to take hold.

The customer reviews speak for themselves and show what a real and noticeable impact Carmoola’s customer-first approach has on people’s lives.”

Apostolos Apostolakis, founding partner at VentureFriends, said: 

“We focus on start-ups that have the potential to address a large market and which can quickly hone in on hard-earned differentiation.

Carmoola does just that, and the company’s performance since launch is evidence of the team’s skill in identifying and pursuing opportunities at pace and with intent.

We are founders ourselves, so we understand the highs and lows of start-up life only too well. In our experience, companies whose leaders and people focus unwaveringly on doing what’s right for the ultimate user of their product are the ones that can grow sustainably, and Carmoola is such a business.”

Lead image: Aidan Rushby, CEO and cofounder of Carmoola. Photo: uncredited. 

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